Just Eat takes $3bn hit on struggling US arm Grubhub

FOOD delivery company Just Eat Takeaway has wiped €3bn (£2.5bn) off the value of its struggling US arm as it attempts to sell the business.

The Anglo-dutch business bought US company Grubhub in a $7.3bn deal just over a year ago, but almost immediately came under pressure from investors to ditch it.

Valuations in food delivery companies have slumped as inflation concerns and a squeeze on consumer spending force customers to cut spending on takeaways.

Just Eat said it had taken a “goodwill impairment of €3bn related to the equity funded acquisition of Grubhub in 2021”, blaming “increases in interest rates and equity volatility”.

The tie-up, announced just months after Just Eat merged with Dutch rival Takeaway.com, created one of the world’s largest food delivery businesses. However, its US arm had already begun to struggle in its North American markets against rivals Uber Eats and Doordash.

Last month, Just Eat secured a deal with online retailer Amazon to offer Prime members in the US a free subscription to a premium version of Grubhub’s app to boost the business.

Executives confirmed yesterday that Just Eat would press on with plans to divest the US company as well as attempting to sell its 33pc stake in Brazilian food delivery company ifood.

The write-down came as Just Eat reported it had missed sales targets and fallen to a loss as a pandemic fuelled boost to takeaway orders ended.

The company reported a 7pc decrease in total orders, while total revenues grew only 1pc on a constant currency basis to €2.8bn. It fell to a €3.5bn loss before tax, thanks to the loss on its Grubhub stake.

Just Eat said it narrowed its losses on an adjusted basis, which the company said “clearly demonstrates the path to profitability”.

Shares in Just Eat were trading up 5pc in Amsterdam.