Just Eat Takeaway.com, Europe’s biggest meal delivery company, has announced a series of steps to revive its business fortunes. After seeing record orders during the pandemic, the food delivery giant has come under pressure from investors. With its shares having lost two-thirds of its value since October, 2020, CEO Jitse Groen has revealed some drastic moves.
One of the biggest surprises was Just Eat Takeaway.com‘s announcement that it is looking to sell US-based Grubhub less than a year after buying it. Some of the decisions being announced as part of a trading update reflects the industry belief that consumer spending could slow for food delivery companies.
Just Eat Takeaway.com prepares to offload Grubhub
In 2021, Takeaway acquired Grubhub in a $7.3B deal and Reuters reports that the company has seen a loss to the tune of billion euro. With investors raising questions about the valuation of loss-making technology companies, Grubhub could be sold entirely or continue to run as a partnership.
Grubhub was a prized possession for Just Eat Takeaway.com and its decision to sell in less than a year shows how pandemic beneficiaries are no longer seen favourably by investors. Groen further confirmed that the company has hired bankers to explore a possible sale of Grubhub or a strategic partnership.