Just Eat Takeaway to acquire Grubhub in USD 7.3 bln deal

Thursday 11 June 2020 12:55 CET | News

Netherlands-based food delivery app Just Eat Takeaway has agreed to acquire US-based food ordering and delivery marketplace Grubhub in a USD 7.3 billion deal.

According to BBC News, the merger will result in more than 70 million active customers who place close to 600 million orders a year. The announcement takes place after talks between Grubhub and Uber stopped, as their potential merger faced competition scrutiny. 

Besides, the new deal comes to subsist the surge in demand for deliveries of takeaway food, as people are forced to stay at home during the COVID-19 pandemic. Moreover, taken together, Just Eat Takeaway and Grubhub reported revenues that totalled USD 3 billion and a profit of USD 447 million, in 2019.

However, the agreement still needs a shareholder and regulatory approval, and is expected to be completed in the first quarter of 2021. Furthermore, analysts have reported that consolidation in the food delivery industry is long overdue, as companies have to spend great amounts of money to gain and retain their customers, thus bringing new challenges for the industry's players.

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Keywords: Just Eat Takeaway, Grubhub, US, mergers, acquisitions, Uber, COVID-19, shareholder, regulatory approval
Categories: Payments & Commerce | Ecommerce
Countries: World
This article is part of category

Payments & Commerce