Nov 13, 2024 - Business

Grubhub to be sold to Wonder Group for $650 million

Illustration of golden food takeout containers. — Illustration: Gabriella Turrisi/Axios

Wonder Group has agreed to acquire Grubhub for $650 million from Just Eat Takeaway, which had struggled for more than a year to find a buyer.

Why it matters: The deal price reflects a dramatic decline from Grubhub's $7.3 billion valuation in 2020, and is the latest transaction in a food delivery sector that continues to struggle post pandemic.

Driving the news: Wonder Group, a food-delivery focused startup from former Walmart and Amazon exec Marc Lore, has agreed to pay $150 million in cash and assume $500 million in debt, the companies announced.

Wonder also announced that is has raised $250 million from new investors.

Between the lines: Just Eat had been under pressure from activist investor Lucerne Capital Management over concerns of profitability.

The big picture: The deal marks another expansion of Lore's vision for Wonder Group, which he plans to have in IPO-ready shape by 2027 with a target valuation of $30 billion.

That goal is to get the entire company, its board and investors on the same page so everyone can work backwards, he told Axios recently on "Leading Indicator," an investing show from Public.

This is a developing story and will be updated.

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Grubhub to be sold to Wonder Group for $650 million

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