Just Eat Takeaway agreed to sell Grubhub to Wonder Group for $650 million, a huge loss after paying $7.3 billion to acquire it in 2020.
The deal, which is expected to close in the first quarter of 2025, includes $500 million of Grubhub's debt, Grubhub announced. Just Eat Takeaway will pocket $50 million.
Just Eat Takeaway aims to focus on profitability and use the proceeds to invest in markets so it "can accelerate growth" Jitse Groen, the chief executive officer, said.
Wonder, which operates delivery-focused restaurants, plans to integrate Grubhub's restaurant partners into its app. Its end goal is to create a "super app" for food delivery the company's, CEO Marc Lore told TechCrunch.
The food delivery industry has had a rough patch post-pandemic, as demand has waned for groceries delivered at home now that lockdowns are over.
Getir and Flink, two companies that raised millions from investors and venture capitalists, are also casualties of a flailing market, according to the news outlet.
In 2020, Uber made an offer to buy Grubhub when it had a valuation of $4.5 billion. That same year, Grubhub, DoorDash, Postmates, and Uber Eats were embroiled in a class-action lawsuit over menu prices and delivery fees.
Wonder is a startup by former Walmart executive Marc Lore. It has raised more than $1.7 billion in funding from investors like Google Ventures and Nestlé.
