Grub The Market
Dutch delivery giant Just Eat Takeaway agreed to acquire U.S. delivery, Grubhub, for $7.3 billion.
- Just Eat Takeaway has delivery operations in 10 European countries plus Israel. Its approach is best summed up by CEO Jitse Groen’s 2018 comment to Bloomberg: “The most value is in being the largest, by far.”
- Uber had been plotting at Grubhub for months but U.S. lawmakers sicced the DOJ and FTC on the deal, arguing it would reduce competition.
Despite a boost in demand from lockdown restrictions, Grubhub has struggled to protect its 23% U.S. market share from Uber Eats and DoorDash. It lost $33 million in Q1 and has yet to turn a profit which likely turned up the pressure to find a buyer. Now, it's Just Eat's ticket to the U.S. market.