Restaurant News Hubb
Advertisement
  • Home
  • News
  • Restaurants & Services
  • Contact us
No Result
View All Result
  • Home
  • News
  • Restaurants & Services
  • Contact us
No Result
View All Result
Restaurant News Hubb
No Result
View All Result
Home Restaurants & Services

Grubhub’s value takes $3B hit as orders fall

admin by admin
August 3, 2022
in Restaurants & Services


Grubhub orders declined 10% in the first half of the year. / Photograph courtesy of Grubhub

Grubhub’s value just took a big hit.

Parent company Just Eat Takeaway (JET) on Wednesday recorded a $3.1 billion impairment on the Chicago-based delivery provider, blaming the drop on comparable stock valuations and rising interest rates. 

Grubhub is now worth a little more than half of the $7.3 billion JET paid for the company last summer. But executives told analysts Wednesday that the impairment was entirely related to economic factors and not the company’s recent poor performance.

In the first half of the year, Grubhub’s total orders fell 10% year over year while sales remained flat. Those struggles have come as competitors DoorDash and Uber Eats continue to grow their sales. 

JET executives reiterated that Grubhub’s struggles are largely related to delivery fee caps, particularly in its key stronghold of New York City, which made its cap permanent last August.

They also highlighted the company’s deal with Amazon that will give Amazon Prime members a year of free access to Grubhub+, a subscription that waives delivery fees on orders over $12 from many restaurants. 

“The commercial agreement with Amazon represents a significant opportunity for growth,” JET CEO Jitse Groen said during an earnings call Wednesday, according to a transcript on financial services site Sentieo.

Groen declined to share results from the 3-week-old partnership other than to say orders have accelerated since it began.

“It would surprise me a lot if you won’t see anything over the course of the next year in terms of a better trajectory for this business,” he said. “While it doesn’t address all the issues that we face in the U.S., it does address a growth and market share issue.”

Grubhub’s valuation has been scrutinized since JET put the company on the market this spring. In May, The Times (UK) reported that it had slashed its asking price to as low as $1.26 billion. 

But the deal with Amazon was viewed as a win for JET, which had been looking for a strategic partner for Grubhub along with a sale. And Groen said Wednesday it continues to pursue a full or partial sale of the company.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.





Source link

Tags: DeliveryNewstechnology
Previous Post

The SBA may free up $180M for restaurants, but don’t celebrate yet

Next Post

Women dominate the restaurant workforce, except at the top

Next Post

Women dominate the restaurant workforce, except at the top

Recommended

Chipotle’s shutdown of a unit kept it from unionizing. Or did it?

July 28, 2022

Kitchen United, the Ghost Kitchen and Restaurant Hub Technology Pioneer, Announces $100M Series C Fundraise

July 28, 2022

Butterfly Equity to acquire Qdoba

August 9, 2022

Mountain Mike’s Pizza Accelerates Franchise Growth in the First Half of 2022

August 1, 2022

Don't miss it

Restaurants & Services

DippinDots debuts Times Square location

August 19, 2022
News

Using AI and Machine Learning to Test Innovative Employee Communication and Scheduling Models

August 18, 2022
Restaurants & Services

On pumpkin spice, plant-based meat and Milk Bar

August 18, 2022
News

Smokin’ Oak Wood-Fired Pizza & Taproom Makes Texas Debut

August 18, 2022
News

Jean-Georges Vongerichten Opens the Tin Building in NYC

August 18, 2022

restaurant-20

© 2022 Restaurant News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy.

Navigate Site

  • Home
  • News
  • Restaurants & Services
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • News
  • Restaurants & Services
  • Contact us

© 2022 Restaurent News Hubb All rights reserved.