Just Eat Takeaway Sells Grubhub to Wonder for $650 Million: A Strategic Shift in the Food Delivery Industry
In a landmark move that has sent ripples through the food delivery industry, Just Eat Takeaway.com, a Netherlands-based multinational food delivery giant, announced the sale of its U.S. subsidiary Grubhub to Wonder Group for $650 million. This deal, which represents a dramatic 91% drop in value from Just Eat Takeaway’s 2021 acquisition of Grubhub for $7.3 billion, marks a significant strategic shift for the company. Expected to close in the first quarter of 2025, this divestiture will allow Just Eat Takeaway to sharpen its focus on profitability in its stronger European markets and streamline its operations.
Wonder, a New York-based food delivery company that has shifted its business model to operating delivery-focused restaurants, will now take on Grubhub’s vast U.S. network and a significant portion of its debts, in addition to the platform’s substantial customer base. While the sale has been long anticipated—Just Eat Takeaway first announced its intent to sell Grubhub in 2022—the final transaction signifies a broader trend within the industry, with delivery services recalibrating after the boom brought on by the COVID-19 pandemic.
The End of an Era for Grubhub and Just Eat Takeaway
For Just Eat Takeaway, the Grubhub acquisition has been fraught with challenges. When the company acquired Grubhub in 2021, it was poised to dominate the U.S. food delivery market, which had been experiencing significant growth as more people turned to food delivery services during the pandemic. However, despite aggressive marketing and expansion efforts, Just Eat’s foray into the U.S. market faced stiff competition from dominant players like DoorDash and Uber Eats, and Grubhub struggled to make headway.
The decision to divest from Grubhub is a recognition of this struggle, as Just Eat Takeaway shifts focus back to regions where it enjoys a more competitive advantage. By selling Grubhub, the company can refocus its energy and resources on consolidating its European markets, where its services, such as Just Eat in the UK and Netherlands, have consistently performed better.
“The sale of Grubhub to Wonder will increase the cash generation capabilities of Just Eat Takeaway.com and will accelerate our growth,” said Jitse Groen, CEO of Just Eat Takeaway. The company expects to generate $50 million in net proceeds from the deal and will also be relieved of Grubhub’s liabilities, including $500 million in debt, which will be assumed by Wonder Group. This will provide a financial cushion for Just Eat Takeaway to reinvest in key European markets where it sees a better return on investment.
Wonder’s Vision: Creating the "Super App" for Food Delivery
While Just Eat Takeaway is exiting the U.S. market, Wonder Group is poised to capitalize on this significant acquisition. Founded in 2018, Wonder has rapidly evolved from a delivery service into an innovative restaurant model, focused on operating delivery-only kitchens in cities like New York and Philadelphia. With the acquisition of Grubhub, Wonder aims to combine Grubhub’s vast restaurant partnerships and customer base with its own delivery infrastructure to create a so-called “super app” for meal delivery.
The concept of a "super app" is not new—companies like WeChat and Gojek in Asia have long provided users with everything from messaging services to food delivery to financial transactions within a single app. Wonder hopes to replicate this model in the U.S., offering not just food delivery from restaurant partners, but also a variety of other services like meal kits and in-house prepared meals from Wonder’s own kitchen network.
Marc Lore, CEO of Wonder, expressed his enthusiasm for the acquisition: “We’re excited to soon offer a curated selection of Grubhub’s restaurant partners directly in the Wonder app, alongside our owned and operated restaurants and meal kits. Bringing Wonder and Grubhub together is the next step in our vision to create the super app for meal time, re-envisioning the future of food delivery,” he said. By combining Grubhub’s established presence in the U.S. with Wonder’s growing network of delivery-centric restaurants, the company hopes to reimagine the food delivery ecosystem.
The deal also expands Wonder’s footprint in the food delivery space. Wonder has raised over $1.7 billion in funding from investors such as Accel, Bain Capital Ventures, Google Ventures, Nestlé, and Forerunner Ventures. With this financial backing, Wonder is well-positioned to challenge its competitors and build a more integrated food delivery service across the U.S. market.
The Changing Dynamics of the Food Delivery Sector
The sale of Grubhub is part of a larger trend in the food delivery industry, which has experienced significant shifts in the wake of the COVID-19 pandemic. During the pandemic, food delivery services surged in popularity as lockdowns and health concerns led people to avoid dining out. Companies like Grubhub, Uber Eats, DoorDash, and others experienced exponential growth, receiving billions of dollars in investment to fuel their expansion. However, as the pandemic receded and consumer behavior began to normalize, the previously profitable business model faced significant challenges.
The cost of delivery, coupled with the struggle to maintain profitability, became more apparent. Many quick-commerce and food delivery startups—such as Getir and Flink—have scaled back operations or reduced valuations as they attempt to weather post-pandemic realities. Getir, for instance, has exited several major international markets to refocus on its home base of Turkey, while Flink has seen its valuation drop significantly. As a result, the food delivery sector is now navigating a phase of consolidation, with companies like Just Eat Takeaway rethinking their approach to U.S. markets.
Just Eat Takeaway’s Refocus on European Operations
For Just Eat Takeaway, selling Grubhub allows the company to focus on its core markets in Europe, where it has long had a competitive edge. Just Eat operates in multiple European countries, including the UK, the Netherlands, Spain, and Italy, and continues to maintain strong brand recognition. The company has invested heavily in technology and customer experience in these regions, and with the capital from the Grubhub sale, it will likely double down on its European operations, improving delivery efficiency, expanding its restaurant network, and investing in sustainable practices.
The U.S. market, on the other hand, is much more competitive and challenging for Just Eat Takeaway to penetrate effectively, especially with well-established players already controlling a significant portion of the market share. By selling Grubhub to Wonder, Just Eat Takeaway is shifting its strategy to concentrate on markets with more favorable conditions for long-term profitability.
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What’s Next for Wonder and Grubhub
Wonder’s acquisition of Grubhub may mark the beginning of a new chapter for both companies. With the addition of Grubhub’s vast restaurant partnerships and delivery infrastructure, Wonder will be able to offer an even more robust service for consumers, combining restaurant meals, meal kits, and direct-to-consumer deliveries into a single, integrated platform.
Wonder’s long-term goal of creating a "super app" for food delivery could revolutionize the way people access meals, potentially offering new forms of meal customization, faster delivery times, and lower service fees by combining technology, delivery logistics, and food production under one roof. This acquisition could significantly disrupt the U.S. food delivery market, particularly if Wonder can successfully integrate Grubhub’s operations and appeal to consumers with a more comprehensive, user-friendly app experience.
For consumers, this acquisition means more options, better service, and potentially more competitive pricing. Wonder’s expansive restaurant partnerships combined with Grubhub’s established brand could also help stabilize the market, offering increased choices for consumers and higher-quality food delivery options.
A New Direction for Just Eat Takeaway and Wonder Group
The sale of Grubhub to Wonder Group is a significant moment in the food delivery sector, reflecting the industry's transition from a pandemic-driven boom to a more cautious and sustainable future. Just Eat Takeaway’s exit from the U.S. market signals a strategic shift towards profitability in regions where it has a stronger foothold, while Wonder’s acquisition of Grubhub sets the stage for a bold new chapter in the rapidly evolving food delivery space. The move not only reshapes the competitive landscape but also highlights the importance of strategic focus, innovation, and consumer-centric solutions in a market where demand continues to evolve.
Wonder’s ambitious goal of building a super app for meal delivery could have wide-reaching implications for the future of the industry. As consumers seek more integrated, seamless solutions for food delivery, the Wonder-Grubhub merger could set the stage for a new era in the food delivery space, one that moves beyond traditional restaurant orders and embraces a wider range of dining solutions.
