Just Eat Takeaway sells Grubhub for $650 million, just 3 years after buying the app for $7.3 billion

NEW YORK (AP) — European food delivery giant Just Eat Takeaway.com is selling Grubhub for $650 million, a fraction of the billions it spent to buy the U.S. platform just three years ago.

Wonder Group, a New York-based food ordering company that touts “fast fine” dining, is set to be Grubhub's new owner. Under terms of the deal, announced Wednesday, Wonder will acquire Grubhub from Just Eat Takeaway.com for $150 million in cash and $500 million in senior notes.

That's far less than than the price tag on Grubhub's last sale. Back in 2020, during the early days of the COVID-19 pandemic and a surge in demand for takeout meals, Just Eat agreed to buy Grubhub for $7.3 billion — reportedly beating Uber to a merger — in a transaction that was later finalized in 2021.

Amsterdam-based Just Eat Takeaway.com acknowledged Wednesday that it had been “actively exploring” the partial or full sale of Grubhub for some time, citing prior announcements from the company. Just Eat Takeaway.com added that selling Grubhub to Wonder would increase growth, cash generation and support investment in countries where it "has the greatest competitive advantage.” Beyond the U.S. the company currently operates in 18 other countries.

The transaction is expected to close during the first quarter of 2025, subject to regulatory approval and other customary conditions. When completed, Just Eat Takeaway.com says it will retain no material liabilities related to Grubhub.

“This deal delivers the right home for Grubhub and its employees,” Just Eat Takeaway.com CEO Jitse Groen said in a statement. Shares of the company were up over 15% by midday Wednesday.

The CEOs of Wonder and Grubhub, Marc Lore and Howard Migdal, also sounded positive notes Wednesday — with both noting that the deal would aid Wonder's mission to “make great food more accessible" and enhance customer experiences.

Wonder, founded by Lore, bills itself as a “new kind of food hall” and delivers made-to-order meals from well-known chefs and restaurants. The New York startup was once known for its fleet of delivery trucks, but later transitioned to a more of brick-and-mortar approach. Its online offerings have also grown. Last year, Wonder purchased meal kit company Blue Apron for $103 million.

Grubhub, headquartered in Chicago, operates in more than 4,000 U.S. cities — with over 375,000 merchants and 200,000 delivery partners across the country to date. According to Just Eat Takeaway.com, the platform generated 237 million orders with a gross transaction value of 8.06 billion euros (about $8.53 billion) last year.

Takeaway.com, which merged with Just Eat in 2020, and Grubhub were both founded in the early 2000s — making them some of the earliest entries in the sector. But competition rapidly increased as now-popular platforms like Uber Eats and DoorDash also joined the game. And customers jumping between apps can make it difficult to keep sales stable.

As of March 2024, numbers from data analytics firm Bloomberg Second Measure showed that Grubhub made up only 8% of meal delivery consumer spending in the U.S. — far less than DoorDash or Uber Eats. DoorDash is currently winning the “food delivery war,” per Second Measure, making up 67% of these sales, followed by Uber Eats' 23%.

This story has been updated to correct that GrubHub generated a gross transaction value of 8.06 billion euros, not million.

FILE - The Grubhub app is seen on an iPhone in Chicago, Feb. 20, 2018. (AP Photo/Charles Rex Arbogast, File)

PARIS--(BUSINESS WIRE)--Nov 14, 2024--

Bioptimus, a leading AI company building the Foundation Model for biology, is thrilled to announce the appointment of Mathilda Strom as its Founding Chief Operating Officer. Mathilda joins Bioptimus with an extensive track record in building pioneering businesses and a reputation as a leader in scaling impactful organizations globally.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241114805370/en/

With nearly 20 years of experience, Mathilda brings an entrepreneurial spirit and strategic vision to Bioptimus. Most recently, she served as the Chief Commercial Officer at CarbonPool, the world’s first insurance company to settle claims in carbon credits rather than cash.

Mathilda is no stranger to launching transformative companies. She co-founded BIMA, a microinsurance and digital health player in emerging markets. Under her leadership, BIMA expanded to 23 countries, enabling millions of low- and middle-income families to access critical financial and health services via mobile technology. Throughout her tenure, she forged deep-rooted partnerships with major global players, including Telefonica, Orange, Vodafone, Allianz, and Prudential, further cementing her reputation as an influential leader in the industry.

Beyond her executive experience, Mathilda has served on the boards of organizations like the Microinsurance Network and Azuri Technologies, a renewable energy firm working to bring solar solutions to Africa. She has earned recognition as one of the top 50 female entrepreneurs to watch and among the top 10 future women leaders in Sweden.

As Bioptimus’s new Chief Operating Officer, Mathilda Strom will oversee strategic operations, enhance organizational growth, and drive the company’s mission to fuel breakthroughs in biomedicine and beyond. Her proven expertise in building high-impact, purpose-driven ventures positions her to lead Bioptimus through its next phase of innovation and expansion.

David Cahané, Co-Founder of Bioptimus, said: ""We are thrilled to welcome Mathilda to Bioptimus as our Founding Chief Operating Officer. Her visionary leadership and track record in scaling impactful businesses align perfectly with our mission to fuel breakthrough discoveries and accelerate innovations in biomedicine and beyond. Mathilda’s expertise and commitment to innovation will be invaluable as we build the Foundation Model for biology to unlock the potential of generative AI in the field. We are excited to have her on board to help shape the future of our company.”

Mathilda Strom joins Bioptimus as Founding Chief Operating Officer (Photo: Business Wire)