Just Eat takes £2.5bn hit on Grubhub as takeaway orders dwindle
Total orders fell 7% in the first half of 2022 due to the lifting of lockdowns and fewer people ordering food to eat at home, the company said.
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 revealed a 3 billion euro (£2.5 billion) hit over its US-based Grubhub business as it reported a drop in half-year orders after demand eased with the waning of the pandemic-fuelled boom.
Total orders fell 7% in the first half of 2022 compared with a year earlier due to the lifting of lockdowns and fewer people ordering food to eat at home, the delivery giant said.
The group’s first half losses narrowed to 134 million euros (£112 million) against losses of 189 million euros (£158 million) a year ago.
Just Eat said its “path to profitability is accelerating” as it strives to swing into profit as a top priority in 2022.
But the takeaway company took a 3 billion euro (£2.51 billion) impairment charge as it wrote down the value of its US subsidiary Grubhub, which it bought in 2021.
In July, it announced that Amazon would take a stake in the businesses and Prime subscribers in the US would get free Grubhub+ membership for a year.
Just Eat said on Wednesday that it is still assessing the financial impact of the deal.
Chief executive Jitse Groen said: “After a period of exceptional growth, Just Eat Takeaway.com is now two times larger than it was pre-pandemic.
“Whilst this growth required significant investment, we have continued to focus on executing our strategy to build and operate highly profitable food delivery businesses.”
Revenue also leapt 13% higher year on year in the UK and Ireland, reflecting efforts to improve profits from its individual food sales.
Just Eat forked out 414 million euros (£346 million) on marketing in the first six months of 2022, a 40% increase on last year, following the Grubhub acquisition and launching a costly advertising campaign with Katy Perry.