GrubHub could be sold just one year after being acquired
After just one year since they were acquired by Just Eat Takeaway, GrubHub may be sold.
JET is facing pressure from shareholders, and in particular one activist investor called Cat Rock Capitol, to either do a partial or full sale of GrubHub or bring on a strategic partner. A letter to JET from Cat Rock said that GrubHub was dragging JET down after a 5% decline in orders from North America.
JET acquired GrubHub for $7.3 Billion and the thought was that acquisition would give JET an advantage in the North American market, but instead with Covid being essentially over and more people dining out instead of staying in GrubHub is losing sales.
GrubHub has been losing market share to its competitors Uber Eats and Doordash, and pretty soon it will be losing even more to Snap Delivered.
The big 3 companies in the delivery space are under regulatory pressure from a number of large cities to curb their delivery fees as lawmakers are introducing legislation to put a cap on the percentage a delivery company can charge a restaurant.