Only one 12 months after being acquired by a European conglomerate, Grubhub might get dumped.
Netherlands-based Simply Eat Takeaway.com mentioned on Wednesday it’s exploring a partial or full sale of GrubHub or bringing in a strategic companion on the urging of its shareholders.
After reporting a primary quarter 5% decline in take-out orders in North America, JET is dealing with rising stress from an activist investor – Cat Rock Capital – to do away with Grubhub.
In October, the Greenwich, Conn. hedge fund’s founder Alex Captain mentioned in a letter to the supply firm’s board that Grubhub was dragging it down and is the “root explanation for the general public market’s lack of confidence in JET.”
Captain additionally mentioned JET administration is “distracted” by Grubhub, which has prompted buyers to “query JET administration’s judgement and motivations.”
The $7.3 billion deal was supposed to provide the European supply firm a leg up in the US — however as a substitute it has dragged the corporate down as Covid-19 restrictions have been lifted and extra persons are eating out as a substitute of ordering meals to go.
Grubhub has been steadily dropping market share to rivals, together with Doordash which is the biggest supply service in New York Metropolis, which had been a Grubhub stronghold for years.
The corporate – together with the complete supply sector – can also be underneath regulatory stress in plenty of giant cities which can be introducing laws to curb the charges it prices eating places.