Food delivery startup Just Eat Takeaway (JET) is considering a multibillion hit to unload delivery platform Grubhub, which it acquired last year for 5.8 billion pounds ($7.3 billion) and now could sell for as low as 1 billion pounds, The Times reported, citing multiple unnamed sources with insider information.
Bank of America is working to find a buyer or strategic partner for Grubhub, per the report. However, the sources said that it’s possible that no buyer will be found despite the bargain-basement price.
See also: Just Eat Takeaway Explores Sale of Grubhub as US Competitors Pull Ahead
Grubhub’s sale price was reportedly dropped to 1 billion pounds to evoke support from potential buyers, the sources told The Times. Several private equity firms were reportedly eyeing the purchase, but it’s unknown if any serious buyers came forward.
Netherlands-based JET had been exploring the sell-off of the Chicago, Illinois-based aggregator after CEO Jitse Groen said last month that it was focusing on “enhancing profitability and strengthening our business.”
Initially, however, JET was steadfast in its decision to hold on to Grubhub. In February, Groen denied speculation that the company was looking to unload the U.S. platform. He said that the company’s plans to delist its shares from the Nasdaq didn’t point to a Grubhub sale.
Read more: Takeaway.com Chief Denies Plan to Sell Grubhub
Investors led by U.S. activist Cat Rock Capital attacked JET’s acquisition deal for Grubhub from the start, stating the company was struggling to compete with UberEats and DoorDash.
“I’d be amazed if this does get done now because I don’t know how management can credibly stand up and go ‘you know, we’ve paid billions of dollars for this asset and now we’re going to take a massive bath on it,’” a source told The Times.
Related: Just Eat Takeaway Could Offload Grubhub as Demand Drops
The public’s taste for home-delivered meals has continued to wane post-pandemic, especially with high inflation sucking budgets dry. The first three months of this year saw JET’s orders decline worldwide by 1% to 264.1 million. Gross transactions increased 4% to 7.2 billion euros.
The company added 20 million new active customers since April 2020, but is now experiencing a “higher-than-normal absolute churn level in the first half of 2022.” As a result, it reduced its transaction value and earnings forecasts for the year, PYMNTS reported last month.
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