Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
With a cloud of uncertainty surrounding the company regarding the future of Grubhub, Chief Executive Officer Jitse Groen is optimistic about the company’s growth in the long term.
Dutch multinational online food ordering and delivery company Just Eat Takeaway.com (AMS: TKWY) has expressed its willingness to sell Grubhub Inc, its American subsidiary offering the same services. This plan was detailed in a trading update shared by the company today, affirming that the decision to sell Grubhub in part or whole is in tandem with its shareholder’s interest.
“The Management Board confirms its alignment with shareholders in wanting to both create and realize value from the Company’s highly attractive portfolio of assets. As such, management is currently, together with its advisers, actively exploring the introduction of a strategic partner into and/or the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be,” the company noted.
The move to sell Grubhub is coming in just about a year since the company acquired the American-based startup for $7.3 billion. The fight to take over Grubhub was a heated one at the time as Uber Technologies Inc (NYSE: UBER) was also a notable contender in the race to buy the company for Uber Eats, its subsidiary in the same line of business.
The acquisition of Grubhub, though strategic, has come under criticism from a number of investors, particularly Cat Rock Capital which owns a 6.5% stake in the company. The investment firm called on Just Eat to sell the subsidiary in order to be able to focus on its European business.
Just as it said, while the firm is awaiting a promising investor to come along, it will continue to operate the Grubhub business as its own in a bid to likely break even with its investments. The call to sell the outfit seems to be received well by investors as TKWY shares are up 8.70% to 28.37 Euros at the time of writing.
Other Highlights of the Just Eat Takeaway Trading Update Besides Grubhub
While the food ordering business has generally taken a hit from the best performances of the Covid-19 pandemic era when people resorted to food ordering services as they were unable to move freely, Just Eat Takeaway has been able to maintain a relatively impressive performance as showcased in its trading update.
While Just Eat Takeaway.com processed 264 million orders, roughly flat compared with the same period in 2021, its Gross Transaction Value (GTV) came in at €7.2 billion in the first quarter of 2022, up 4% when compared with the same period of 2021. This significant uptick was driven by a higher Average Transaction Value.
With a cloud of uncertainty surrounding the company regarding the future of Grubhub, Chief Executive Officer Jitse Groen is optimistic about the company’s growth in the long term. According to his words in a statement, Jitse said the firm “expects profitability to gradually improve throughout the year, and to return to positive adjusted EBITDA in 2023.”