Just Eat Expects Grubhub to Be Part of U.S. Consolidation
Just Eat Expects Grubhub to Be Part of U.S. Consolidation
(Bloomberg) -- Just Eat Takeaway.com NV expects its newly-acquired U.S. food business Grubhub to be part of consolidation in the delivery industry, executives said in an investor presentation.
After closing a $7.3 billion acquisition for Grubhub in June, Amsterdam-based JET is now investing in the company’s core U.S. markets as part of a turnaround plan.
At Thursday’s capital markets event, executives said in a presentation that they expect there will be consolidation in the “U.S. last mile delivery” sector, with JET involved when that time arrives “from a position of strength that reflects the strategic value of Grubhub.”
The firm is focusing on building up its services in surrounding suburban areas in the U.S., as well as testing out a micro-fulfillment center in New York for rapid delivery of convenience items.
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“If you look at the current situation in the U.S. there’s a lot happening in the space and we’re just at the beginning of this whole trend,” Chief Executive Officer Jitse Groen said in an interview. Playing a role in consolidation “can mean any sort of thing,” he added.
The company still has a lot of work to do to integrate Grubhub into its organization, Groen added during the presentation later on Thursday.
“A lot of companies are involved in the last mile and some companies do not have a last mile solution so we’re very open to that,” Groen added. “Anything that makes Grubhub a much stronger player, we’ll look at.”
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