European-based Just Eat Takeaway has entered a definitive agreement to buy Grubhub for $7.3 billion.
In the wake of the coronavirus, online food delivery has seen increased growth as people have come to rely on such services, in lieu of dining in restaurants. Combining the two companies will increase their global footprint. Just Eat Takeaway already is the leading online food delivery service in three of the top markets: the UK, the Netherlands and Germany. Bringing Grubhub into the fold will give the company a commanding presence in the US, the fourth top market.
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, commented: “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. We could not be more excited.”
It should be interesting to see what the combined company can accomplish in the US.