In the ever-evolving world of online food delivery, mergers and acquisitions are commonplace. One of the most significant transactions in recent years was the acquisition of Grubhub. So who bought Grubhub? Let’s dive into the details.
The official buyer of Grubhub is Just Eat Takeaway, a Netherlands-based company. The acquisition was announced on June 10, 2020, for $7.3 billion in an all-stock deal and completed on June 15, 2021. This acquisition aimed to strengthen Just Eat Takeaway’s presence in the United States food delivery market.
Who is the official buyer of Grubhub?
The official buyer of Grubhub is Just Eat Takeaway, a Netherlands-based company. They announced the acquisition of Grubhub for $7.3 billion in an all-stock deal on June 10, 2020.
The Deal
The acquisition was completed on June 15, 2021. As a result of the transaction, Grubhub shareholders received new Just Eat Takeaway.com shares, representing approximately 30% of the company’s issued share capital. The acquisition aimed to create a strong presence for Just Eat Takeaway in the United States food delivery market.
The Reasons Behind the Acquisition
Just Eat Takeaway.com acquired Grubhub to enter the online food delivery market in the United States and strengthen its position in the global market. The acquisition allowed the company to expand its presence in four of the world’s most attractive markets for online food delivery: the United States, the United Kingdom, the Netherlands, and Germany.
Changes Under New Ownership
Grubhub’s operations and services are expected to change under new ownership. Just Eat Takeaway.com focuses on prioritizing lower fees and fully employed drivers in its European operations. While specific details about how this strategy might apply to Grubhub have not been disclosed, Just Eat Takeaway.com CEO Jitse Groen has stated that they essentially do the same thing everywhere and do not have different strategies for different regions.
Implications for the Online Food Delivery Market
The acquisition has several implications for the industry. As the food delivery ecosystem continues to expand, its economic structure is still evolving. The increasing consolidation in the online food delivery space could lead to reduced margins for restaurants and increased competition among local delivery players.
Grubhub’s Competition
The acquisition of Grubhub by Just Eat Takeaway.com has had both positive and negative effects on Grubhub’s competition. On one hand, the merger has the potential to bring Grubhub’s fees down to a more competitive level. On the other hand, Grubhub has faced challenges since the acquisition, losing market share to competitors like DoorDash and Uber Eats.
The Future of Grubhub
The future of Grubhub under its new ownership, Just Eat Takeaway.com, is expected to focus on growth and strategic partnerships. Grubhub has been diversifying its base by expanding into convenience stores, college campuses, hotels, and stadiums. The company has also been focusing on delivery to these locations.
Grubhub’s Pricing Plans
Grubhub offers three different pricing plans for restaurants: Basic, Plus, and Premium. The rates start at 5% for the Basic plan and 10% for the Plus plan. Additionally, Grubhub offers delivery options with fees starting at 10% for using their professional delivery driver fleet.
Conclusion
The acquisition of Grubhub by Just Eat Takeaway.com has had mixed effects on Grubhub’s competition. While the merger has provided some benefits, such as the potential for lower fees and financial strength, Grubhub has also faced challenges in maintaining its market share and profitability. The company has implemented new strategies to address these issues and remain competitive in the food delivery market.
Despite these challenges, the future of Grubhub under Just Eat Takeaway.com’s ownership looks promising. With strategic partnerships and a focus on growth, Grubhub is set to remain a significant player in the online food delivery market.
Frequently Asked Questions
How does Grubhub’s acquisition by Just Eat Takeaway.com affect the consumers?
The acquisition could lead to lower delivery fees for consumers due to Just Eat Takeaway.com’s focus on lower fees in its European operations. However, details of how this strategy will be applied to Grubhub are not yet disclosed.
How does the merger affect Grubhub’s restaurant partners?
The merger could potentially reduce the fees that Grubhub charges its restaurant partners. However, increased consolidation in the food delivery space could also lead to reduced margins for restaurants.
What is Grubhub’s current market share in the online food delivery market?
As of the end of 2020, Grubhub held about 16% of the U.S. food delivery market. However, it has been losing market share to competitors like DoorDash and Uber Eats.
What are some of the challenges Grubhub has faced since the acquisition?
Since the acquisition, Grubhub has faced challenges in maintaining its market share and profitability. It has lost market share to competitors like DoorDash and Uber Eats.
What strategies is Grubhub implementing to address these challenges?
To address these challenges, Grubhub is focusing on strategic partnerships and growth. It is diversifying its base by expanding into convenience stores, college campuses, hotels, and stadiums, and focusing on delivery to these locations.
