The transaction is set to finalise in the first quarter of 2025, with Just Eat projecting net proceeds of up to USD 50 million from the sale.
The acquisition follows a period of market consolidation in the food delivery industry, triggered by a decline in demand as the pandemic eased and interest rates increased. Just Eat purchased Grubhub in 2021 to expand into the US market. However, the company struggled to compete with rivals like Uber Eats and DoorDash, leading to plans to divest Grubhub, initially announced in April 2022. The deal comes after years of challenges, including high investor price expectations and a tough deal market.
Under the terms of the agreement, Wonder will pay USD 142 million in cash and assume USD 500 million in Grubhub debt. This acquisition marks a key development for Wonder, which has been evolving since abandoning a food truck-based delivery model in favour of storefront locations in 2023.
Wonder’s mobile app will continue to function as it currently does, though it plans to integrate some of Grubhub’s restaurant partners into its platform. The acquisition would enable the company to avoid building its restaurants in competitive areas, instead directing customers to existing Grubhub partners. The deal also allows Wonder to take over an Amazon stake in Grubhub, maintaining the ongoing partnership between Amazon and the delivery service.
The sale price reflects Grubhub's recent struggles, including a decline in performance since its acquisition by Just Eat, which reduced marketing spending to curb losses. Just Eat had previously written down Grubhub's value by USD 3 billion in 2022. Despite these challenges, the sale is not expected to affect Just Eat's financial outlook for 2024.
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