According to Grubhub CEO Adam DeWitt, the company will not be sold soon, as reported by Restaurant Business. DeWitt said during the Wall Street Journal’s Global Food Forum, that the company is more interested in finding an investor than a buyer.
Just Eat Takaway, Grubhub’s owner, said in a statement made in April that it was looking for a strategic partner or a full or partial sale of the company. The parent’s investor, Cat Rock Capital, has reportedly encouraged the selling of Grubhub.
Just Eat Takeaway has struggled to find a buyer, the magazine suggests, even after lowering the asking price to $1.26 billion, down from the $7.3 billion it paid in 2021.
Succeeding Dewitt’s unfazed comment regarding a partnership, Just Eat Takeaway reaffirmed: "Nothing has changed in relation to our previous statements around Grubhub … In April we confirmed that management is currently, together with its advisers, actively exploring the introduction of a strategic partnership and/or the sale of Grubhub, in whole or in part. The process is ongoing and further announcements will be made as and when appropriate."
Compared to DoorDash and Uber Eats, Grubhub’s domestic business has struggled, with a model concentrating on urban areas affecting its growth as suburban delivery exploded because of the pandemic. Missteps like the recent NYC free lunch promotion only exacerbated its precarious position, overwhelming its application and staff and inundating its restaurant owners. DeWitt, however, noted the promotion caused 200,000 new user downloads. Full Story
Related: Grubhub Promotion Strains NYC Foodservice; Grubhub Supports NYC Liquor Tax Suspension
Image: Grubhub
from Industry Operations https://ift.tt/DwmixZE
No comments: