Just Eat Takeaway sells GrubHub for 650 million dollars amid controversy
- Just Eat Takeaway finalized the sale of GrubHub, which was sold at a significant loss.
- The transaction involved transferring debts and yielded proceeds of 50 million dollars.
- The sale is part of a strategy to enhance Just Eat's cash generation and potential growth.
The Netherlands-based food delivery group, Just Eat Takeaway, has confirmed the completion of the sale of its fast-food service, GrubHub, to the food delivery startup WonderGroup. This transaction follows the company's decision to delist from the London Stock Exchange in late 2024, which aimed at reducing operational costs. The sale was finalized after a prolonged effort to divest the loss-making US unit, which had suffered from increased competition in the food delivery market, particularly from industry giants like Uber Eats. Just Eat acquired GrubHub for approximately 7.3 billion dollars during the peak of the pandemic when demand for home delivery surged. However, due to a significant slowdown in orders in the following years, the company was forced to sell GrubHub at a steep loss of nearly 6.5 billion dollars. Ultimately, the proceeds from the sale amounted to 50 million dollars after accounting for a transfer of 500 million dollars worth of debt. Just Eat's founder, Jitse Groen, expressed that the divestment will increase the cash generation capabilities of Just Eat Takeaway and support overall growth. The sale also coincided with a broader trend of companies withdrawing from the UK markets, following similar moves by various firms that sought to privatize their operations amid economic challenges.