Takeaway delivery specialist Just Eat is considering selling its Grubhub business after a fall in orders (Gareth Fuller/PA)
(Picture: PA Archive)Food delivery business Just Eat Takeaway has taken a staggering £2.5 billion hit in a write-down in the value of its US arm Grubhub as the food delivery firm renewed vows to sell the company amid dwindling takeaway orders.
The London-listed firm reported a loss of £112 million in the first six months of 2022 as order numbers dropped 7% compared to 2021 while the value of each order fell 3%. The UK and Ireland performed worse than other European regions with a 13% drop over last year.
Just East Takeaway has become the latest firm to report dwindling food orders as consumers feel the squeeze from soaring inflation and the rising cost of living. On Tuesday, home delivery chain Domino’s saw a 6% drop in revenues down to £711 million, as a surge in demand for its cheese and tomato pizzas during last year’s lockdown tailed off after the easing of Covid restrictions. Last week, pub chain Marston’s said it saw revenues fall 2% in the 42 weeks to 23 July compared to pre-pandemic levels as the CEO said “food sales have slumped” and “people have stopped going to carveries.”
Just Eat Takeaway has faced ongoing pressure from activist investor Cat Rock Capital to sell Grubhub after completing its £5.6 billion takeover of the business in June last year.
In April, Just Eat CEO Jitse Groen said the company was “in talks with people” about the potential sale, and had appointed financial advisers. He wouldn’t rule out selling the business at a loss relative to the value of its purchase last year.
The company announced it planned to re-appoint COO Jörg Gerbig following allegations of personal misconduct at a corporate event. Just Eat wouldn’t comment on details of the allegation, the nature of the misconduct or where it took place, citing privacy concerns.
