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Takeaway.com CEO: US Delisting Does Not Indicate Plan To Sell Grubhub

Published on Feb 14 2022 2:23 PM in Food tagged: Just Eat / Takeaway.com / GrubHub / Just Eat Takeaway.com / Just Eat Takeaway

Takeaway.com CEO: US Delisting Does Not Indicate Plan To Sell Grubhub

Just Eat Takeaway.com CEO Jitse Groen said on Sunday February 13 that the company's decision to de-list its shares from the Nasdaq stock exchange should not be taken as an indication of plans to sell its Grubhub subsidiary.

The company announced its intention to delist its US shares on Tuesday 8 February. Shares of the Amsterdam-based company remain listed on the Amsterdam and London stock exchanges.

"A Cost Reduction Measure"

"This is a cost reduction measure," Groen told Dutch television programme "Business Class" in an interview. He repeated that the company is still considering various strategic options for the subsidiary's future.

Under Pressure

Takeaway, which is the largest food delivery company in Canada, Germany and Britain, bought Grubhub for $7.3 billion in June of last year but has since come under pressure from shareholders to sell the unit.

Additional Statements By Groen

In the interview, Groen repeated his conviction that only the largest food delivery players in each market will, eventually, be highly profitable. He acknowledged that the company is "not number one" in the US where it competes with Doordash and Uber among others.

"We have to get into a market position such as we have in the Netherlands, so that we can earn money," he said.

"We have a lot of discussions with people in the U.S. over Grubhub. (But) if you talk to people then you have to have the goal that it improves the business."

Shares Down

Takeaway's shares closed at €38.25 on Friday 11 February, down 6% on the day. They have lost two-thirds of their value since reaching a peak above €109 in October of 2020.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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