For weeks, it appeared Uber was on the verge of acquiring Chicago food delivery company Grubhub. But a European delivery giant ended up sealing the deal.
Grubhub and Netherlands-based Just Eat Takeaway.com announced that they've agreed to merge, creating the largest online food delivery company outside of China. The news comes on the heels of reports earlier Wednesday that the two were nearing a deal.
The all-stock deal gives Grubhub shares an implied value of $75.15, valuing Grubhub at $7.3 billion.
The deal comes as acquisition talks with Uber fizzled out due to antitrust concerns. Several U.S. senators previously sent a letter to antitrust officials urging scrutiny of an Uber/Grubhub deal, should it go through.
However, a deal with Just Eat, which didn't have a presence in the U.S. prior to the Grubhub deal, could be more appetizing to regulators. The company was created earlier this year when U.K.’s Just Eat and Netherlands-based Takeaway.com merged in an $11.1 billion deal.
Matt Maloney, Grubhub's CEO and founder, will lead the combined company's businesses across North America and will join Just Eat Takeaway.com's management board. The business will be headquartered in Amsterdam, with Chicago serving as its North American headquarters. Grubhub will continue to be based in Chicago, according to the news release.
“When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S." Maloney said in a statement. "My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America. I’ve known Jitse [ Groen, Just Eat's CEO] since 2007 and his story is much like mine.
"Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world. We could not be more excited.”
