Grubhub Confirms 7.3B-Dollar Acquisition By Just Eat Takeaway
AMSTERDAM - When rumors surfaced that Uber was considering the acquisition of Grubhub, the entire foodservice industry was abuzz. Just one month later, we finally learned whether this deal would be followed through as Grubhub made an official statement this week. As of yesterday, Just Eat Takeaway.com N.V. and Grubhub entered into a definitive agreement whereby Just Eat is to acquire 100 percent of the shares of Grubhub for $7.3 billion in an all-stock transaction to create one of the world’s largest online food delivery companies.
“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,” Matt Maloney, CEO and Founder of Grubhub, commented. “Like so many other entrepreneurs, we started modestly, restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America…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.”
As reported in a press release, the transaction represents Just Eat’s entry into online food delivery in the U.S. The combined company will become one of the world’s largest online food delivery companies outside of China, with strong brands connecting restaurant partners with their customers in 25 countries.
Built around four of the world’s largest profit pools in online food delivery—the U.S., the United Kingdom, the Netherlands, and Germany—the merger will give the company the ability to deploy capital and resources to strengthen its competitive positions in all its markets. Strong leadership positions in almost all countries will also contribute to Just Eat becoming a significant player in North America. Just Eat Takeaway.com owns the leading Canadian business SkipTheDishes. The two combined processed approximately 593 million orders in 2019 with more than 70 million combined active customers globally.
“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,” Jitse Groen, CEO and Founder of Just Eat Takeaway.com, said. “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.”
Congratulations to Grubhub and Just Eat Takeaway.com on this monumental deal!