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Netherlands - ground food delivery company Just Eat Takeaway.com said on Wednesday that it is selling its U.S. business sector Grubhub to New York - based Wonder Group in a deal valued at $ 650 million — a stark 91 % less than the $ 7.3 billion Just Eat Takeaway paid for the companyjust four years ago .
The deal is wait to close in the first quarter of 2025 , and Just eat up Takeaway expects last proceeds of $ 50 million . Wonder , which begin as a food delivery business organisation in 2018 but has since pivoted to run manner of speaking - sharpen restaurant in New York and Philadelphia , will take on $ 500 million of Grubhub ’s debt .
The divestiture comes as food and foodstuff speech becomes an increasingly unprofitable endeavor for byplay that bet the farm on the fashion model during the COVID-19 pandemic and later on , when people sheltering in place and social distancing opted to order in food and foodstuff item they would previously buy in person .
The solid food delivery and quick - commerce sectors saw a massive influx of venture capital and other investment in the follow old age , with startups likeGetirandFlinkraising millions and indue aggressively in merchandising and acquisitions .
But once the world return to a likeness of normalcy and post - pandemic tailwinds tag off , the instant delivery model evidence unsustainable . Flink is now say to bevalued at just under $ 1 billion , down from a peak ofnearly $ 3 billion , while Getir has retreated , shutting down its operationsin the U.S. , the U.K. , and Europe to focus on its abode market of Turkey .
Just feed Takeaway itself has been trying to deal Grubhub for years . The society firstannouncedit was looking to trade Grubhub in April 2022 to focus on profitability , less than a twelvemonth after closing the deal to acquire it , but last class , its CEO saida sale was prove to be “ very difficult . ”
“ The sale of Grubhub to Wonder will increase the cash coevals capability of Just feed Takeaway.com and will accelerate our growth , ” Jitse Groen , Just Eat Takeaway ’s CEO , say in a statement . The company say the sale would take into account it to endue in country where it has a competitive advantage and generate free cash stream .
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Wonder ’s chief executive officer Marc Lore sound out that the company aims to create a A-one app for solid food saving through this acquisition .
“ We ’re frantic to shortly pop the question a curated selection of Grubhub ’s eating place partners directly in the Wonder app , alongside our possess and operated restaurants and meal kit . Bringing Wonder and Grubhub together is the next step in our vision to make the super app for meal metre , re - envisioning the future of food delivery , ” he tell in a affirmation .
wonderment has raised more than $ 1.7 billion in funding , consort to Crunchbase , with backers like Accel , Bain Capital Ventures , Google Ventures , Nestlé , and Forerunner Ventures .
