Uber investors are likely to be banging their heads against a wall today, as takeaway delivery rival JustEat secures the purchase of another huge player in the industry, Grubhub, despite Uber reportedly being in talks to purchase the firm themselves.
The European food delivery service has agreed to buy the US-based app Grubhub for $7.3bn (£5.8bn) in a deal that would create the world’s largest food delivery service outside China.
The Transaction represents Just Eat Takeaway.com’s entry into online food delivery in the United States and builds on the strategic rationale for its recent merger with Just Eat plc (“Just Eat”).
Just Eat Takeaway.com and Grubhub (the “Combined Group”) combined will become the world’s largest online food delivery company outside of China, with strong brands connecting restaurant partners with their customers in 25 countries.
The Combined Group will be built around four of the world’s largest profit pools in online food delivery: the U.S., the United Kingdom, the Netherlands and Germany, increasing the Combined Group’s ability to deploy capital and resources to strengthen its competitive positions in all its markets.
The Combined Group has strong leadership positions in almost all countries in which it is present and will become a significant player in North America.
Just Eat Takeaway.com owns the leading Canadian business SkipTheDishes. The
Combined Group is one of the few profitable players in the space and processed approximately 593 million orders in 2019 with more than 70 million combined active customers globally.
Jitse Groen, CEO and founder of Just Eat Takeaway.com, said: “Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents. Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China. We look forward to welcoming Matt and his team to our company and working with them in the future.”
Matt Maloney, CEO and founder of Grubhub, commented: “When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S.. My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood.
“Today, Grubhub is a leader across North America. I’ve known Jitse since 2007 and his story is much like mine. Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world. We could not be more excited.”
Image credit: Flickr-Gordon Joly