Just Eat Takeaway Sells Grubhub to Wonder for $650 Million

Just Eat Takeaway (AS:TKWY), the largest meal delivery company in Europe, announced on Wednesday that it has reached an agreement to sell its US subsidiary Grubhub to the food delivery startup Wonder for $650 million.

The news sent Just Eat’s shares surging more than 21% in European trading.

The Amsterdam-listed firm had been exploring options to sell Grubhub, based in Chicago, since 2022 after acquiring it for $7.3 billion in 2020 during a surge in demand for delivery services. The sale process, however, faced challenges due to slower growth, high taxes, and fee caps in New York City.

"Just Eat Takeaway is finally bringing an end to its troubled US venture," said Bryan Garnier analyst Clement Genelot, who estimated the company had lost over $7 billion in shareholder value in the US market.

Grubhub’s $650 million enterprise value includes $500 million in senior notes and $150 million in cash, according to Wonder, which is led by former Walmart (NYSE:WMT) executive Marc Lore.

Talks between the companies were first reported by the Wall Street Journal on Tuesday.

Just Eat CEO Jitse Groen noted in February that the US M&A environment posed challenges, with fee caps alone costing the company roughly $100 million annually. Grubhub, along with DoorDash (NASDAQ:DASH) and Uber (NYSE:UBER) Eats, has been embroiled in a legal dispute with New York City over delivery fee limits.

The deal is expected to close in the first quarter of 2025, with Just Eat stating it will not affect its full-year guidance and that it retains no substantial liabilities from Grubhub.

Analysts, however, suggest Just Eat may need to consider exits from other markets, such as Australia and Canada, to align its valuation more closely with European competitors. This year, the company has already left New Zealand and France, narrowing its operations to 18 countries outside the US.