In the latest case of food startup cannibalism, U.K.-based online takeout site Just Eat just ate up two of its competitors in combined £266.1 million ($336 million) meal. De-lish!
The first: Berlin-based delivery startup Delivery Hero. The German-based, global food delivery startup announced that it will be selling the U.K. branch of its business — called hungryhouse — to Just Eat for £200 million ($248 million). Just Eat, which went public in 2014, could pay as much as an additional £40 million ($50 million) on top of that based on how well hungryhouse performs between now and the deal’s date of closing, says TechCrunch.
Niklaus Ostberg, CEO of Delivery Hero, was quoted as saying, “The sale of hungryhouse to Just Eat rationalizes our global footprint, and we remain focused on operating market-leading brands globally. Proceeds from this sale will allow us to pursue further global growth opportunities, as we have consistently and successfully done in recent years.”
Additionally, Just Eat announced that it would be acquiring Canadian delivery startup SkipTheDishes for £66.1 million ($82 million) as a means to expand into the dining rooms of our neighbors to the north.
David Buttress, CEO of Just Eat, said in a statement, “The acquisition of SkipTheDishes will materially strengthen Just Eat’s number one position in Canada. Canada is a phenomenally exciting country for online food delivery with significant runway for growth and a clear opportunity to drive channel shift. It will complement our existing operations so that Just Eat is best-placed to address this fast-growing market.”
Just Eat will add SkipTheDishes’ network of 2,900 restaurants and 350,000 active customers to its already appetizing cohort of 16.6 million users and more than 63,900 take-out restaurants.
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