Just Eat Takeaway has agreed to acquire Chicago-based Grubhub

Just Eat Takeaway, the European food delivery app, has agreed to acquire Chicago-based Grubhub for $7.3bn in stock in a deal that could create a world leader in online delivery. Just Eat Takeaway beat out Uber, which had put Grubhub in play by approaching its US rival in early February… Under the terms of the deal, Grubhub shareholders will receive Just Eat Takeaway shares worth $75.15 for each of their existing shares, a little over 60 per cent higher than where Grubhub was trading before reports about deal talks with Uber emerged in May. Just Eat Takeaway shareholders will control about 70 per cent of the combined company, while the rest will be owned by Grubhub’s investors… Consolidation is accelerating in the online food delivery market, as more restaurants and consumers turn to apps for their dining needs during coronavirus lockdowns. Grubhub’s business model is more closely aligned with Just Eat Takeaway, which is focused on offering a marketplace for takeaway outlets to offer their own services, than Uber’s, which uses its own delivery network to bring meals from restaurants that would not traditionally offer take-out. The marketplace business has traditionally offered higher margins, though Grubhub’s battle with Uber Eats sent it into the red last year. 

James Fontanella-Khan, Andrew Edgecliffe-Johnson, Tim Bradshaw, Dave Lee and Miles Kruppa