Just Eat Takeaway, the result of a nearly $8 billion merger this year between Amsterdam’s Takeaway.com and the U.K.’s Just Eat, is valued at about $17 billion. Grubhub was valued at about $5.4 billion.
Grubhub would become part of Just Eat Takeaway, a company based in Amsterdam that has operations in the Netherlands, Germany and the U.K. Maloney would run the North American operations from Chicago.
“We intend to invest in the business as long as necessary to restore leadership in the U.S.,” Maloney said.
DoorDash leads the U.S. food-ordering and delivery business with 45 percent market share, according to Second Measure, a research firm. Grubhub has 23 percent, followed by Uber Eats at 22 percent.
Grubhub shareholders aren’t expected to vote on the $7.3 billion all-stock deal until early next year. Grubhub shares rose about 7 percent today to more than $63 per share in the first trading since the deal was announced late yesterday.
Maloney and Just Eat Takeaway CEO Jitse Groen, two of the pioneers in online food ordering and delivery, share a common vision that scale and profitability will win out. Leadership in the biggest markets, such as Chicago and New York or Germany and the U.K., is the key.
Maloney defended Grubhub’s strategy laid out last fall to invest more of the company’s profits in marketing, advertising and discounts to fend off rivals, such as Uber Eats and DoorDash, which were willing to lose money in pursuit of market share.
“We are taking back share,” Maloney said. “We are defending our core, profitable markets. We have the right strategy, and we need to continue to execute this for years. This isn’t something that’s going to turn around in six months. This is something that’s going to take two to three years.”
Despite cutthroat competition, the online food and delivery business has been turbocharged by the coronavirus, which caused AG亚洲国际游戏homebound consumers to order out more for food. Maloney said Grubhub saw record order volumes in May and June, and its gross food sales were up 59 percent in April and May from a year earlier. Groen said his company’s orders were up 41 percent in April and May.
“We have seen an increase in activity in return diners and new diners, with retention meaningfully higher than previous quarters,” Maloney said. “New York consumer volume is above pre-COVID levels.”