Just Eat considers Grubhub sale as order numbers shrink
The takeaway delivery specialist only bought its US rival in a £5.75 billion deal in 2020.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Just Eat Takeaway.com has said it is considering selling off its Grubhub arm after a slump in orders.
The takeaway delivery specialist only bought its US rival in a £5.75 billion deal in 2020 but has recently faced calls from one of its biggest shareholders to offload the business.
Activist investor Cat Rock Capital, which owns an almost 7% stake in the company, said last year that selling Grubhub would deal with Just Eat’s “deep and damaging” undervaluation.
Just Eat told shareholders on Wednesday that it is working with advisers to explore the possible sale of Grubhub or the potential “introduction of a strategic partner”.
“There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be,” the company said.
It came as Just Eat said orders dropped by 1% to 264.2 million in the first three months of 2022 as it struggled against pandemic-boosted levels from last year.
Meanwhile, gross transaction values increased by 4% to 7.2 billion euros (£6 billion), representing a slowdown in growth.
As a result, it reduced its transaction value and earnings forecasts for the year.
Just Eat said growth in the current quarter is expected to “remain challenging” but stressed that returning customer numbers and order frequency have been above pre-pandemic levels.
Chief executive Jitse Groen said: “After two years of exceptional growth, we maintain the same high level of orders that were processed during the Covid-19 restrictions.
“Our priority for 2022 lies in enhancing profitability and strengthening our business.
“We expect profitability to gradually improve throughout the year, and to return to positive adjusted EBITDA (earnings before interest, tax, depreciation and amortization) in 2023.”