- 15 February 2022
- Transport / Logistics Services
The CEO of Just Eat Takeaway has denied plans to delist shares from the Nasdaq stock exchange are linked to plans to divest its US business Grubhub.
Just Eat Takeaway acquired Grubhub last year for $7.3 billion, in a move linked to the idea that only the very largest restaurant and grocery delivery businesses are going to achieve profitability.
The company announced plans to delist on 8th February. Its CEO Just Green said that it was a ‘cost reduction measure’ and that Just Eat is looking into a number of strategies for Grubhub’s future.
Groen said to Dutch media, “We have to get into a market position such as we have in the Netherlands, so that we can earn money,” adding that there had been “a lot of discussions with people in the U.S.” about Grubhub.
“[But] if you talk to people, then you have to have the goal that it improves the business,” he continued.
Speaking to Reuters this week he denied that the move with the Nasdaq was linked to plans to divest.
The firm has been looking into grocery delivery, with a pilot delivering groceries from five of UK grocery chain Asda’s supermarkets. Prior to this, Groen had said that there wasn’t any money to be made in groceries but he seems to be following the market with rivals Deliveroo and Uber moving into that space.
The majority of the pressure to divest Grubhub comes from Just Eat’s shareholders with Cat Rock Capital saying that such a move could lift its share price as it focuses more tightly on the European market.
As with all of its rivals in this space, Just Eat is still making heavy losses and sees growth as the only way to achieve profitability. Words such as ‘moving toward’ profitability should be taken with a heavy grain of salt, as the likes of Deliveroo and Delivery Hero burn through investment with no end in sight to their loss making.
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