Just Eat Takeaway Could Offload Grubhub as Demand Drops

Just Eat Takeaway (JET) could offload Grubhub for real this time as the public’s taste for home-delivered meals continues to wane post-pandemic and high inflation squeezes budgets, according to a trading statement on Wednesday (April 20).

The first three months of this year saw orders decline worldwide by 1% to 264.1 million at the Amsterdam-headquartered firm. Gross transactions increased 4% to €7.2 billion. The company added 20 million new active customers since April 2020 but is now experiencing a “higher-than-normal absolute churn level in the first half of 2022.” As a result, it reduced its transaction value and earnings forecasts for the year.

“While growth in the second quarter of 2022 will remain challenging, key growth drivers such as Average Monthly Order Frequency and Returning Consumers are expected to remain above pre-pandemic and even above pandemic levels,” per the statement. 

See also: Just Eat Takeaway Stock Falls as CEO Says He Won’t Sell Grubhub

Cat Rock and other investors have been calling on JET to sell or spin off its Grubhub arm to boost valuation. JET CEO Jitse Groen said at the time that he had no plans to sell the Chicago, Illinois company it acquired in June 2020 for $7.3 billion (£5.8 billion). The Grubhub deal was finalized last year and created the world’s largest food delivery service outside of China.

“After two years of exceptional growth, we maintain the same high level of orders that were processed during the COVID-19 restrictions. Our priority for 2022 lies in enhancing profitability and strengthening our business. We expect profitability to gradually improve throughout the year, and to return to positive adjusted EBITDA in 2023,” Groen said.

Groen said the company is considering a sale of Grubhub rather than a partnership, but there was no guarantee that a deal would take place. 

As early as February when the combined company delisted from the Nasdaq stock exchange, Groen was still adamant that a sale of Grubhub wasn’t happening.

Read more: Takeaway.com Chief Denies Plan to Sell Grubhub