Citing Inflation, Just Eat Takeaway Hikes Commissions

Europe’s largest online meal ordering service is raising the commission it charges to restaurants throughout the region.

As Reuters reported Monday (June 27), Just Eat Takeaway, which owns Grubhub, will increase its commissions by 1%.

“I can confirm that in response to rising inflation and higher operational costs, we are increasing our commission rates for the first time in five years in certain European markets,” a spokesperson for the Dutch company said.

The rate increase doesn’t apply to the U.K., Reuters said, a market where Just Eat is in competition with companies like Uber Eats and Deliveroo.

Earlier this year, Just Eat announced it was “actively exploring” a partial or full sale of Grubhub — which it purchased for $7.3 billion in 2021 — or possibly finding a strategic partner.

Read more: Just Eat Takeaway Could Offload Grubhub as Demand Drops

“Our priority for 2022 lies in enhancing profitability and strengthening our business,” Just Eat Takeaway CEO Jitse Groen said in a statement. “We expect profitability to gradually improve throughout the year, and to return to positive adjusted EBITDA in 2023.”

Inflation isn’t just harming meal delivery services. Last week, on-demand grocery delivery startup Gorillas announced it was closing its warehouses in Belgium and handing off some of its business to Belgium organic and seasonal products delivery firm Efarmz.

With inflation increasing — along with rising competition and changing consumer habits — Gorillas has begun to review operations in Belgium, Denmark, Italy and Spain.

See also: Pink Slips Mount as Ultrafast Grocers Confront Global Challenges

In May, Gorillas laid off 300 employees, cutting its administrative staff in half. Those job cuts were part of a wave to hit the industry last month, such as U.K.-based ultrafast grocer Zapp, which announced it was letting go of about 200 to 300 workers.

Meanwhile, Turkey-based ultrafast grocer Getir said in late May it was laying off 14% of the staff at its global headquarters.

“Rising inflation and the deteriorating macroeconomic outlook around the world pushes all companies, especially in the tech industry and including Getir, to adjust to the new climate,” the company said.