Just Eat Takeaway.com has agreed to acquire US-based meal delivery app Grubhub for $7.3 billion, creating the largest food delivery service outside of China.
Grubhub is an app-based service which allows consumers to order food from restaurants across the US. The purchase provides Just EatTakeaway.com with access to the lucrative US food delivery market, and the combined business will serve customers in 25 countries including the UK, Germany and the Netherlands.
Together, Just Eat Takeaway and Grubhub processed 593 million orders in 2019, and have more than 70 million active customers.
The purchase comes as a blow to Uber – which operates its own food delivery service, Uber Eats – as the company was reportedly in discussions with Grubhub regarding an acquisition.
This deal is still subject to the approval of shareholders at both companies, but once the deal is completed, Grubhub’s shareholders will own 30% of the combined group. The deal is expected to be completed in the first quarter of 2021.
Jitse Groen, CEO and founder of Just Eat Takeaway.com, said: “Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents.
“Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China. We look forward to welcoming Matt and his team to our company and working with them in the future.”
Matt Maloney, CEO and founder of Grubhub, added: “When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the US.
“Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world.”
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