USA – Delivery-focused food hall operator Wonder has revealed it will acquire food delivery company Grubhub for US$650 million from Just Eat Takeaway which acquired Grubhub for US$7.3 billion in 2022.
The transaction is anticipated to conclude in Q1 2025, pending regulatory approval and other closing conditions.
Wonder stated that acquiring Grubhub aligns with its vision to merge the convenience, speed, and variety of first- and third-party restaurants, groceries, and meal kits into a single app. Currently, Grubhub collaborates with 375,000 merchants and 200,000 delivery partners across the U.S.
Wonder’s platform enables customers to place orders from over 30 restaurant brands simultaneously, and it claims that deliveries from its food halls can be completed in as little as 30 minutes.
The food hall operator recently raised US$250 million from new investors. Rapidly expanding, Wonder previously secured US$700 million in March and aims to reach 90 locations by next year. All its sites will be available on Grubhub for third-party delivery.
“As we focus on enhancing our customer experience through broader selection, faster delivery, and variety, we’re looking forward to soon featuring a curated list of Grubhub’s restaurant partners within the Wonder app, alongside our in-house restaurants and meal kits,” said Marc Lore, founder and CEO of Wonder.
Meanwhile, Grubhub has been working to expand its reach by collaborating with Amazon, offering Grubhub+ free for Amazon Prime members.
In May, Amazon introduced restaurant delivery, supported by Grubhub, on its site and app. In October, Grubhub partnered with Amazon Key, allowing delivery workers one-click access to restricted residential buildings.
Grubhub also broadened its grocery offerings this year by partnering with independent grocers and Albertsons.
Wonder brought on Tony Hoggett, Amazon’s former senior vice president of worldwide grocery, as its chief operating officer in October.
Grubhub has signed partnerships with multiple hotel chains and also has a successful campus dining division, working with 360 universities.
However, despite its diversification, Grubhub has faced challenges in achieving profitability. During the first half of the year, it encountered “ongoing headwinds” due to fee caps in New York City, one of its largest markets.
Nonetheless, the company continues working toward breakeven cash flow, with JET reporting Grubhub’s free cash flow before working capital changes as approximately negative US$4.3 million in this period.
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