- Just Eat Takeaway.com says GrubHub is better positioned in the U.S. than its competitors.
- The food delivery company hopes to complete GrubHub acquisition in the first half of 2021.
- Just Eat Takeaway.com has no plans of expanding services to delivery of grocery & other items.
The Chief Operating Officer of Just Eat Takeaway.com (AMS: TKWY), Joerg Gerbig, expressed confidence on Friday that GrubHub (NYSE: GRUB) in the United States is better positioned as compared to its competitors, despite having slid to the third place.
Shares of GrubHub are currently about 2.5% down on Friday. At £51.63 per share, GrubHub is roughly 45% up year to date in the stock market after recovering from a low of £22.78 per share in March when the impact of COVID-19 was at its peak. Learn more about stock market volatility.
GrubHub acquisition will complete in the first half of 2021
Takeaway.com acquired Just Eat in January. In June, the combined company showed interest in bringing U.S. based GrubHub under its umbrella for £5.53 billion. Just Eat Takeaway.com COO also highlighted on Friday that the food delivery company was committed to completing the GrubHub acquisition next year in the first half.
GrubHub’s competitors, including Deliveroo, Uber Eats, and Delivery Hero, are still struggling to pull out of loss. But GrubHub, Gerbig added, was already profitable.
Uber Technologies had also shown interest in acquiring GrubHub earlier this year. But in July, it opted instead for Postmates Inc. that pushed its share up in the U.S. food delivery market to 30%. The market is still dominated by DoorDash that has an about 45% share. With a 23% share, GrubHub currently stands at number three in the U.S. food delivery market.
Just Eat Takeaway.com reported a 44% increase in H1 revenue
In the first six months of the ongoing fiscal year, Just Eat Takeaway reported a massive 44% increase in revenue to £920 million as COVID-19 restrictions fuelled food delivery orders. At £141.18 million, its net loss in H1, however, was higher than the same period last year attributed to acquisition-relate costs that it valued at £135.81 million.
Just Eat Takeaway.com COO also confirmed on Friday that the food delivery company will not follow Uber Eats and Delivery Hero in expanding services to delivery of groceries and other everyday goods.
In related news, Just Eat Takeaway.com will also divest its minority stake in Brazil’s iFood if a buyer makes an appropriate bid in the upcoming months.
Just Eat Takeaway.com is currently trading at a per-share price of £79.25 that represents an about 5% gain in 2020 so far. At the time of writing, it is valued at £11.79 billion.