In the News
Just Eat buys US rival GrubHub
11th June 2020
European food delivery giant Just Eat Takeaway has bought US rival GrubHub in a £5.75 billion deal.
This comes at a time when the demand for delivery services has gone through the roof.
As a result, it has created the biggest food delivery service outside of China, and capitalised on the inability of GrubHub and Uber to reach a deal.
However, you should be aware that it is rare for mergers to generate the perceived benefits: so what is the market view? Well, in the first place, analysts argue that consolidation in the sector is overdue - and Just Eat Takeaway is itself the result of a pan-European merger.
But I would argue that whilst it might make customer retention easier, and reduce the need for discounting in the sector, can food delivery services be confident that current levels of demand are going to remain? I think this is a deal to watch - will it prove to be a masterstroke or a misstep?
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