According to Just Eat Takeaway.com, GrubHub is better positioned than its competitors in the USA.
The food supplier hopes to complete the acquisition of GrubHub in the first half of 2021.
Just Eat Takeaway.com will not extend its services to the delivery of food and other items.
The Chief Operating Officer of Just Eat Takeaway.com (AMS: TKWY), Joerg Gerbig, expressed confidence on Friday that GrubHub (NYSE: GRUB) is better positioned in the United States compared to its competitors, although it has slipped to third place.
GrubHub’s shares fell by approximately 2.5% on Friday. At £51.63 per share, GrubHub’s share price on the stock exchange is approximately 45% higher than the previous year’s price, 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 the volatility of the stock market.
GrubHub acquisition to be completed in the first half of 2021
Takeaway.com acquired Just Eat in January. In June, the combined company showed interest in bringing GrubHub, based in the USA, under its roof for £5.53 billion. The COO of Just Eat Takeaway.com also emphasized on Friday that the food supply company had committed to completing the acquisition of GrubHub in the first half of next year.
GrubHub’s competitors, including Deliveroo, Uber Eats and Delivery Hero, are still struggling to pull out of the loss. But GrubHub, Gerbig added, is already profitable.
Uber Technologies also showed interest in acquiring GrubHub earlier this year. In July, however, the company chose Postmates Inc. instead, which increased its share of the US food delivery market to 30%. The market continues to be dominated by DoorDash, which has a share of approximately 45%. GrubHub currently ranks third in the US food delivery market with a 23% share.
Just Eat Takeaway.com reported a 44% increase in revenues in the first half year.
In the first six months of the current fiscal year, Just Eat Takeaway reported a massive 44% increase in revenue to £920 million as COVID-19 restrictions have fueled food delivery orders. However, at £141.18 million, its net loss for the first half was higher than in the same period last year due to acquisition-related costs of £135.81 million.
The COO of Just Eat Takeaway.com also confirmed on Friday that Uber Eats and Delivery Hero will not be following suit in expanding its services to include the delivery of food and other daily consumer goods.
In this context, it should be mentioned that Just Eat Takeaway.com will also sell its minority stake in the Brazilian iFood if a buyer submits an appropriate offer in the coming months.
Just Eat Takeaway.com is currently trading at a price of £79.25 per share, which represents an increase of approximately 5% in 2020 to date. At the time of writing this article, the value is estimated at 11.79 billion pounds sterling.