Grubhub said the Covid-19 pandemic has benefited the company.
Chief Executive Matt Maloney and Chief Financial Officer Adam DeWitt of the Chicago restaurant food delivery service said in a July 30 letter to shareholders that "we now believe the pandemic has been less of a temporary demand spike and more of a permanent catalyst putting our business on a higher, sustained trajectory."
The company reported Thursday that its second-quarter revenue rose 41% to $459.3 million from a year earlier, which bested analysts' expectations. But Grubhub couldn't profit from the increased revenues, announcing an adjusted loss of $15.9 million, or a loss of 17 cents per share, which compares with earnings of $24.9 million, or earnings of 27 cents per share a year earlier. The 17-cent loss also besting analysts' expectations.
In the latest quarter, Grubhub said it spent $100 million on assistance to its partners, including $85 million on lower diner fees, coupons, and increased advertising, and $15 million on safety for its drivers and restaurants.
Covid-19 also sparked the company in the quarter. "The dramatic tailwind we are experiencing sparked by Covid is broad-based. ... We had millions of new diners trying Grubhub for the first time, meaningfully improved diner retention and frequency for new and old diners alike, and a business mix that could easily support long-term economics ... Grubhub’s underlying business performed extremely well by any measure during the second quarter," Maloney and DeWitt wrote to shareholders.
Just Eat Takeway.com of The Netherlands announced it was acquiring Grubhub in June for $7.3 billion. The Dutch company is buying Grubhub in an all-stock deal "to create the world’s largest online food delivery company outside of China," according to the companies. Maloney will join the Just Eat Takeaway.com board and will head the company's North America operations.
