Former Walmart Executive’s Startup Near Deal to Buy Grubhub
Marc Lore’s Wonder is close to a deal to buy the food-delivery startup from Europe’s Just Eat Takeaway.com
Wonder, a food-delivery startup led by former Walmart WMT 0.93%increase; green up pointing triangle executive Marc Lore, is in advanced talks to buy Grubhub from Europe’s Just Eat Takeaway.com TKWY -1.87%decrease; red down pointing triangle, according to people familiar with the matter.
The details
A deal for Grubhub could be finalized imminently, assuming the talks don’t fall apart, the people said. Amsterdam-based Just Eat bought Grubhub in 2021 in a deal valued at over $7 billion. Grubhub had been in discussions to sell itself to Uber before it made a surprise move to join forces with Just Eat instead.
But the deal drew criticism from Just Eat’s shareholders, some of whom argued it was a distraction. In 2022, Just Eat said it was considering selling Grubhub after its U.S. subsidiary reported a decline in orders following a sales boom during the pandemic.
Grubhub is likely to be valued below $1 billion in any deal.
The rationale
Wonder, launched in 2018, originally focused on operating mobile kitchens from a fleet of trucks that aimed to recreate meals from popular restaurants.
Last year it switched strategies, closing the trucks and opening physical locations instead. It has a few dozen locations in the New York City area and aims to have 100 locations by the end of next year, Lore said in an interview last month.
Buying Grubhub would boost Wonder’s revenue as it continues to raise money. It also offers a direct source of delivery drivers and related technology.
Wonder was last valued at around $3.85 billion in a 2022 financing round, according to PitchBook. The startup also owns meal-kit provider Blue Apron, another once-highflying startup that struggled in more recent years.
Lore joined as CEO in 2021 after leaving his role as chief of U.S. e-commerce operations for Walmart.
The context
Grubhub, which was founded in 2004, pioneered online ordering in the U.S. But it came under pressure as it warded off competition from newer entrants such as DoorDash and Uber Eats.
Just Eat was created in 2020 through the $11.1 billion merger of the U.K.’s Just Eat and Netherlands-based Takeaway.com. The deal combined one of the biggest food-delivery companies in the U.K. with a major player in the space in continental Europe.
After its discussions with Grubhub fell apart, Uber pivoted and made a $2.65 billion acquisition of smaller food-delivery rival Postmates Inc. in late 2020.