Grubhub Acquired by New York’s Wonder Group for $650 Million Amid Competitive Food Delivery Market

In a notable shift of ownership within the food delivery market, Grubhub will soon be under the helm of the New York-based Wonder Group, following a $650 million sale agreement. Striking a contrast with the whopping $7.3 billion Just Eat Takeaway.com paid in 2021 amid a pandemic-fueled surge in demand, the current deal comprises $150 million in cash and $500 million in senior notes, as reported by

KGW

.

With the competitive landscape intensifying, Grubhub has struggled to maintain footing against titans like Uber Eats and DoorDash. This acquisition aims to freshly empower the company by integrating with Wonder’s operations, which are redefining the market with a “new kind of food hall” concept. Despite strategizing to potentially make a large impact, the sale will not conclude until early 2025, awaiting necessary regulatory clearances as per the

Chicago Sun-Times

coverage.

Wonder, steered by former Walmart bigwig Marc Lore, echoes a vision where quality dining experiences are within greater reach, talking up convenience and variety in their delivery operations. This deal, CEO Lore mentioned, “is the next step in our vision to create the super app for meal time, re-envisioning the future of food delivery,” in a bid to revamp and centralize the food ordering process, as stated by the

Chicago Sun-Times

. The Chicago-based team at Grubhub, numbering 750 employees, faces an uncertain future as the company’s spokesman abstained from commenting on potential changes to operations in Chicago.

On the difference in valuations, Just Eat Takeaway’s CEO Jitse Groen affirmed in a statement obtained by

KGW

that “This deal delivers the right home for Grubhub and its employees.” Current Grubhub CEO Howard Migdal is confident in the merger’s ability to synergistically augment both operations, stating, “I am incredibly excited for Grubhub to join forces with Wonder and bring more value to our diners, merchants and delivery partners.” Both leaders share aspirations to boost accessibility to superior food options for a broader range of customers.

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