Just Eat acquires Grubhub
In a move that creates the largest food delivery business in the world Just Eat Takeaway has confirmed the acquisition of US Grubhub for $7.3 billion.
The $7.3 billion deal is an all shares takeover that still requires a vote of approval from both shareholder groups, seeing Grubhub’s shareholders own 30% of the merged group. The new group will combine over 70 million active customers.
It is the latest M&A chapter in the world of food delivery as only months ago saw Takeaway.com win an aggressive bidding war to acquire Just Eat for £6.3 billion.
The merger will provide access to market in 25 countries for Dutch Just Eat Takeaway, most valuable being the US.
The global Covid-19 pandemic has brought high growth in food delivery services with it as restaurants across the world adapt to the new market conditions.
Even pre-Covid-19 takeaway and delivery markets saw growth as we reported back at the start of 2020 – UK hospitality spending January 2020: positive on takeaways and sustainability.
Covid-19 has focused many more restaurants to adopt takeaway and integrate with click and collect. Restaurants can benefit significantly from offering ready-to-eat meals, professionally prepared, ordered online, to be eaten at home.
In the UK 7.5 billion food deliveries were made last year, figures that fuelled UK consumer research organisation NPD Group’s report showing an increase in UK food deliveries of 39% in three years.
A similar study for hospitality EPOS company, Zonal, reveals that 28% of consumers in the UK ordered more meal deliveries than 12 months ago, with nearly half of the orders being made through online channels.
With growth like this not just in the UK but across the globe, the enormous price paid for Just Eat Takeaway is fuelled by growth that all too many business sectors right now would relish.
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Just Eat acquires Grubhub