GrubHub to Merge with Just Eat Takeaway.com

After failed discussions with Uber, Grubhub announced this week that the company is to merge with European food delivery company Just Eat Takeaway.com.

Both companies made the announcement on Wednesday and the merger is unlikely to garner as much regulatory attention as its possible combination with Uber.

The deal gives Grubhub shares an implied value of $75.15 which implies a total equity value of $7.3 billion on a fully diluted basis.

“Like ridesharing, the food delivery industry will need consolidation in order to reach its full potential for consumers and restaurants,” an Uber spokesperson said in a statement. “That doesn’t mean we are interested in doing any deal, at any price, with any player.”

The merger will combine two of the top food deliver services in the U.S. and Europe. The companies said they expect the deal to close in the first quarter of 2021.

Grubhub CEO Matt Maloney will join Just Eat’s management board and lead the combined business in North America. Two Grubhub directors will join Just Eat’s supervisory board, according to the press release.

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.”

Maloney commented: “When Grubhub and Seamless were founded, the online takeout industry didn’t exist
in the U.S.. My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America. I’ve known Jitse since 2007 and his story is much like mine. 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.”