Just Eat Takeaway, a Netherlands-based food delivery company, has been acquired by technology investment firm Prosus for 4.1 billion euros (approximately $4.3 billion). This transaction follows Just Eat Takeaway’s decision to concentrate on its European market, which was signaled by the recent sale of Grubhub. The move is expected to transition the company into a privately held entity, aligning with its restructuring efforts and strategic refocus. Prosus’ involvement introduces additional resources that could drive future developments in food delivery and related services, including artificial intelligence and financial technology.
A few years ago, Just Eat Takeaway expanded aggressively, acquiring Grubhub for $7.3 billion in 2021 to establish a stronger presence in the U.S. market. However, competition from major players like DoorDash and Uber (NYSE:UBER) Eats, along with post-pandemic shifts in consumer behavior, led to challenges. The company later sold Grubhub to Wonder for just $650 million, marking a significant financial loss. This contrasted with earlier expectations that Grubhub would enhance Just Eat Takeaway’s global position. The recent sale to Prosus reflects a shift in strategy, focusing on profitability and regional dominance rather than broad international expansion.
What Does This Deal Mean for Just Eat Takeaway?
Just Eat Takeaway’s management sees the acquisition as an opportunity to accelerate its investment in technology and customer experience. CEO Jitse Groen emphasized the benefits of Prosus’ backing, particularly in enhancing service efficiency and expanding operations in food and grocery delivery.
“Just Eat Takeaway.com is now a faster growing, more profitable and predominantly European-based business,” said Groen. “Prosus fully supports our strategic plans, and its extensive resources will help to further accelerate our investments and growth across food, groceries, FinTech and other adjacencies.”
How Will Prosus’ Expertise Influence the Business?
With previous investments in food delivery platforms such as iFood in Brazil, Prosus has experience in optimizing operations through technology. The use of artificial intelligence has reportedly streamlined iFood’s logistics, and similar implementations may be introduced at Just Eat Takeaway.
“The implementation of AI has revolutionized operations at iFood and enhanced the customer experience and support for drivers, making it the most loved food delivery brand in Brazil,” the company stated. “Similar opportunities exist at Just Eat Takeaway.com to improve the customer and driver experience, boost service reliability and optimize logistics.”
The food delivery industry has faced widespread difficulties, with companies adjusting to changing demand patterns. The pandemic drove a surge in meal deliveries, but as inflation affected consumer spending, demand softened. Some competitors struggled to remain viable, such as the French startup Epicery, which ceased operations last year.
“The food delivery platform sector has gone through particularly difficult times in recent years, and we have not been spared,” Epicery stated.
This acquisition marks another shift in the competitive landscape of food delivery services. With Prosus’ backing, Just Eat Takeaway aims to strengthen its European presence while leveraging technology to enhance efficiency. Whether this strategy leads to long-term financial stability remains to be seen, as the industry continuously adapts to economic conditions and consumer preferences. Given the volatile nature of food delivery markets, future profitability will depend on operational improvements and the company’s ability to differentiate itself from other major players.
