Grubhub’s Parent Company is Thinking About Selling It Again

Popular online delivery service GrubHub is facing potential changes as their parent-company is considering the introduction of a strategic partner and/or partial or full sale. 

Amsterdam-based Just Eat Takeaway, or JET, acquired Grubhub for 7.3 billion in 2020. Answering hunger pangs in over 25 countries, the acquisition resulted in Grubhub becoming the largest online food delivery service outside of China. In Europe and North America alone, JET says they’ve connected over 634,000 restaurants this past March.

While the number of restaurant options has noticeably increased, filings with the Securities and Exchange Commission detail the pandemic’s impact as Grubhub continues to face challenges, while offering struggling establishments rebates on commission. 

In addition to commission rebates, major cities in North America initiated a fee-cap, limiting the charge of delivery and take-out during the pandemic. While an understandable answer at the time, many fee-caps remained in place even after their expiration in 2021. The fee-caps in Canada don’t expire until the end of 2022.

If those issues weren’t enough, Grubhub has also recently faced a major lawsuit connected to its business practices during the pandemic. Looking to get Grubhub back on track, shareholders have been pressuring for asset divestment and merging with a larger rival service. Whether or not this is the direction the company plans to explore remains to be seen.