Less than a year after completing its $7.3 billion acquisition of Grubhub, Just Eat Takeaway is considering selling the platform following a drop in online food orders.
A spokesperson for Just Eat Takeaway told FOX Business there was interest in a “total or partial sale,” but declined to divulge specific potential buyers.
“Just Eat Takeaway.com has always stated that we are open to exploring opportunities to further strengthen Grubhub’s position,” the spokesperson added. “We have had discussions with parties regarding strategic partners and have reviewed all options on the table to explore full value for our shareholders.”
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Just Eat Takeaway has benefited from a rapidly growing consumer base as a result of the COVID-19 pandemic, adding more than 20 million active consumers since April 2020. However, the company says it is experiencing a “level of absolute churn higher than normal”. in the first half of 2022.”
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The company recorded 264.1 million orders worldwide and 89.6 million orders in North America in the first quarter of 2022, representing declines of 1% and 4%, respectively, from 267.1 million global orders and 94.7 million North American orders during the same period. one year ago. Gross transaction volume was €7.2 billion in the first quarter of 2022, up 4% compared to the same period of 2021, driven by a higher average transaction value.
“Our North American division continued to perform well despite the impact of expense caps, which impacted EBITDA by €192 million over the past year,” the spokesperson added. “Grubhub is fundamentally a very healthy and growing company, close to profitability, and which would be, despite the impact of the fee caps.”
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Going forward, the company is focused on improving profitability by increasing revenue per order, improving courier costs per order, and reducing excess and operating expenses. While the company warned that second-quarter growth “will remain challenging,” it expects average monthly order frequency and repeat customers to be above pre-pandemic and pandemic levels.
Just Eat Takeaway expects mid-digit year-over-year gross transaction volume growth in 2022, compared to GTV’s previous mid-teen growth forecast, and at a margin adjusted EBITDA between -0.5% and -0.7% of GTV, compared to the previous guidance of -0.6% to -0.8%.
Management expects to achieve positive adjusted EBITDA for the full year 2023.