Once a Pandemic Powerhouse, Grubhub Sells for a Fraction of its Worth in $650M Deal
Grubhub, once valued at $7.3 billion in 2020, has been sold to the New York-based food delivery startup Wonder for $650 million—a deal that highlights the European company Just Eat Takeaway’s significant financial loss in its U.S. operations. Wonder, founded by entrepreneur Marc Lore, will acquire Grubhub in a transaction expected to close in early 2025, giving it instant access to Grubhub’s expansive U.S. network of couriers and restaurant partnerships.
Just Eat, the Netherlands-based food delivery giant, bought Grubhub at the height of the pandemic-driven delivery boom, hoping to strengthen its U.S. footprint amid skyrocketing demand. However, the company has since struggled to turn a profit with its American acquisition, citing regulatory challenges and high operating costs as ongoing obstacles. New York City’s strict fee cap laws reportedly cost Just Eat $100 million annually in lost revenue, and increased U.S. taxes further cut into Grubhub’s margins.
With Grubhub, Wonder gains a pre-existing network of 200,000 couriers and access to a wide portfolio of more than 375,000 listed restaurants across the U.S. Wonder, which began as a food-truck delivery service, now operates physical locations and plans to integrate Grubhub into a “super app” that will combine restaurant meals, groceries, and meal kits from brands like Blue Apron, which it acquired last year.
“This acquisition moves us closer to our vision of a mealtime ‘super app,’” said Lore in a press statement. Grubhub’s network will allow Wonder to reach a national audience almost instantly, complementing its plans to expand from 28 to 90 locations by next year. As part of the transaction, Wonder will pay $150 million in cash and take on $500 million in senior debt, according to the companies.
Just Eat CEO Jitse Groen previously signaled the company’s intent to cut losses in the U.S. market, acknowledging that its move into the American market may have been overly ambitious. The company had already exited other international markets, including France and New Zealand, to narrow its focus on profitable regions.
Since its 2020 acquisition of the food delivery app, Just Eat has faced competition from established U.S. players such as DoorDash and Uber Eats, both of which have outpaced Grubhub in market share. Wall Street analysts estimate Just Eat’s exit from Grubhub alone has led to a $7 billion loss in shareholder value. However, investors responded positively to the news of the sale, with Just Eat’s stock price climbing 20% after the announcement.
Analyst Clement Genelot at Bryan Garnier noted that the sale marks the end of Just Eat’s “disastrous U.S. journey,” underscoring the costly miscalculation that many international firms face in the fiercely competitive American delivery market.
