Just Eat Takeaway writes down Grubhub by 3 bln euros

Food delivery giant Just Eat Takeaway on Wednesday wrote down the value of US arm Grubhub by three billion euros, just a year after buying it for more than twice as much.

The firm said separately that it was nominating a top executive for reappointment, months after he was investigated for alleged misconduct.

Amsterdam-based Just Eat Takeaway is trying to sell Grubhub, after facing criticism from shareholders over the $7.3 billion euro deal completed in 2021.

The firm said in a statement that it had suffered a “goodwill impairment of 3.0 billion euros ($3 billion) related to the equity-funded acquisition of Grubhub”.

It blamed the write-down on a “reduction in sector valuation”, interest rates and share volatility.

“The company, together with its advisors, continues to actively explore the partial or full sale of Grubhub,” it added.

Just Eat Takeaway first said in April that it was considering either selling Grubhub or a partnership venture following calls from some shareholders to focus on Europe.

The write-down comes despite a deal announced in July allowing Amazon Prime customers in the United States to receive a year of free restaurant delivery through Grubhub.

Just Eat Takeaway was created in 2020 after Dutch online service Takeaway.com gobbled up Britain’s Just Eat, and it boomed on the back of the Covid pandemic-fuelled surge in home delivery.

The firm suffered further unrest in May when it said it was not reinstating chief operating officer Joerg Gerbig due to a complaint over “possible personal misconduct at a company event.”

But the company said it would now recommend his reinstatement.

“The external expert investigation has now been concluded and based on the outcome Mr. Joerg Gerbig can continue in his position as COO.”

dk/lth