The news: Online food ordering and delivery platform Just Eat is considering a partial or full sale of its subsidiary Grubhub, per a company statement.
More on this: While Netherlands-based Just Eat bought Grubhub to boost its presence in the US market, the latter had already been shedding market share for several years as new competitors moved into the space due to the relatively low barrier for entry.
A saturated market: Grubhub’s pandemic-related growth was far more modest than its competitors’ gains.
The pandemic effect: As people’s pandemic-related precautions fade into the rearview mirror, nearly all food delivery companies are seeing their growth slow significantly for a variety of reasons, including more people returning to in-person dining, and rising inflation leading some to cut back on discretionary purchases such as food delivery.
The big takeaway: Enhancing its profitability and strengthening its business is Just Eat’s priority this year, CEO Jitse Groen said.