Just Eat Takeaway still exploring partial or full sale of Grubhub.

Just Eat Takeaway still exploring partial or full sale of Grubhub.Just Eat Takeaway, the Netherlands-based food delivery giant, is reportedly exploring the possibility of a partial or full sale of Grubhub, the Chicago-based aggregator it acquired in 2021 [1]. The company's CEO, Jitse Groen, stated that the priority for 2022 is to enhance profitability and strengthen the business, suggesting that Grubhub may no longer be a part of these plans [1].Just Eat Takeaway initially announced its acquisition of Grubhub in 2020, and the deal closed in June 2021 [2]. However, since then, Grubhub has underperformed relative to other leading aggregators in the United States, such as DoorDash and Uber Eats [2]. According to data from PYMNTS' Digital Divide series, Grubhub accounted for only 41% of orders placed through aggregators in February 2023, compared to 71% for DoorDash and 48% for Uber Eats [2].Despite these numbers, Grubhub has a strong presence in certain regions, particularly in the Northeast and the Pacific region [2]. However, with the high cost of operating a restaurant aggregator, there is little room for underperformance. Delivery is time-intensive, and when consumers are placing orders as small as a single meal, the margins can be slim [2].Given these factors, it is not surprising that Just Eat Takeaway is considering its options for Grubhub. The company has denied speculation in the past, but recent changes in tune suggest that a sale or strategic partnership may be on the table [1].Just Eat Takeaway's exploration of a sale or partnership comes at a time when the food delivery market is becoming increasingly competitive. With companies like DoorDash and Uber Eats dominating the market, smaller players like Grubhub may struggle to compete [1].In conclusion, Just Eat Takeaway's exploration of a partial or full sale of Grubhub is a response to the underperformance of the aggregator in the highly competitive food delivery market. While Grubhub has a strong presence in certain regions, the high cost of operation and slim margins make it difficult for the company to compete with larger players. As Just Eat Takeaway continues to explore its options, it will be interesting to see how the food delivery market evolves.References:[1] Financial Times. (2023, April 20). Just Eat Takeaway explores sale of Grubhub. https://www.ft.com/content/ef581a6e-ae42-4a38-8690-b15b607b2365[2] PYMNTS.com. (2023, April 20). Just Eat Takeaway Could Offload Grubhub as Demand Drops. https://www.pymnts.com/news/delivery/2022/just-eat-takeaway-explores-sale-grubhub-united-states-competitors-pull-ahead/