Grubhub, Just Eat Takeaway Merger To Create 'World’s Largest Food Delivery Business Outside China'

Dutch online food ordering and home delivery firm, Just Eat Takeaway, has announced its acquisition of the United States competitor Grubhub in a deal that will create the world’s largest online food delivery company outside China in terms of revenues and gross merchandise value.

Completion of the merger is expected by the first quarter of 2021. Jitse Groen, CEO and founder of Just Eat Takeaway, will lead the combined group. Matt Maloney, CEO and founder of Grubhub, will lead the combined group’s businesses across North America, and will join the Just Eat Takeaway management board. Both men have known each other since 2007.

Under the definitive agreement, Just Eat Takeaway will acquire Grubhub’s 100% of shares in an all-stock transaction worth $7.3 billion. The merger is the largest in the tough world of on-demand food ordering and delivery, where growth by consolidation is increasingly the norm. Just Eat Takeaway and Grubhub have also grown to their position of market leaders by gobbling up their rivals.

The combined group will focus on the world’s four largest online food delivery markets: the U.S., the United Kingdom, The Netherlands and Germany. These four markets have substantial opportunities for growth and longer-term profitability potential.

One of the group’s major goals is to become a significant player in Canada and the U.S. SkipTheDishes, Just Eat Takeaway’s Canadian business, will confer the combined group with greater flexibility to make long-term investment decisions.

Just Eat Takeaway said the merger will boost the combined group’s ability to deploy capital and resources to strengthen its competitive positions in all its markets.

Groen noted he and Maloney are the two remaining food delivery veterans in the sector and had begun their businesses at the turn of the century but 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," said Groen. "I am excited that we can create the world’s largest food delivery business outside China."

Groen noted the combined group will be the clear global leader in its sector. He said the hybrid operating model of both the firms places extra value on volume at independent restaurants to drive profitable growth.

Maloney said his vision in founding Grubhub was to transform the delivery and pickup ordering experience.

"Like so many other entrepreneurs, we started modestly -- restaurant by restaurant in our Chicago neighborhood. Today, Grubhub is a leader across North America," according to Maloney.

The combined group intends to become "the fastest, best and most rewarding way to order food from your favorite local restaurants in North America and around the world."