Foodtech Startups Market Will Grow at a Healthy With Top Key Players – GrubHub, Domino’s Pizza, Tesco, Sainsbury, Pizza Hut – Owned

Foodtech Startups Market Will Grow at a Healthy With Top Key Players – GrubHub, Domino’s Pizza, Tesco, Sainsbury, Pizza Hut  Owned
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Uber acquires Postmates for €2.34B after losing Grubhub deal to Just Eat Takeaway

The ride-hailing app Uber, which also operates as a food delivery company UberEats will acquire Postmates for $ 2.65 billion (approx €2.34 billion) in an all-stock transaction, after all the struggle to buy out Grubhub tanked previously

Plans to close deal in Q1 2021

This acquisition could boost Uber’s delivery business and help compensate the company’s core ride-hailing business, which has plummeted due to the COVID-19 pandemic. Notably, the San-Francisco-based company reported $ 2.9 billion (approx €2.6 billion) loss in the first quarter of 2020. The company is planning to close the deal in Q1 2021. Post the acquisition, Postmates app will continue to run separately but with a more efficient, combined merchant, and delivery network. 

Uber CEO Dara Khosrowshahi, said, “Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery—they can be a hugely important part of local commerce and communities, all the more important during crises like COVID-19. As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100 percent year on year. We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country.” 

Soaring demand for online food delivery

According to Uber, consumers will benefit from expanded choice across a wider range of restaurants and other merchants. For restaurants and merchants, Postmates and Uber Eats will together offer more tools and technology to more easily and cost-effectively connect with a bigger consumer base.

Even though the company is not profitable, the demand has soared since mid-March, with 89% YoY gross bookings growth in April. On the other hand, Uber Eats is shutting down its business in unprofitable markets. 

60,000 restaurants and retailers, 50 states

Founded by Bastian Lehmann, Sam Street, Sean Plaice in 2011, Postmates led the creation of on-demand delivery in the U.S and has grown to be the number one platform in Los Angeles. 

Right now, the platform operates in all 50 states and offers customers access to the most selection of merchants in the US with more than 600,000 restaurants and retailers available for delivery and pickup, many of which are exclusive to Postmates. 

“Over the past eight years we have been focused on a single mission: enable anyone to have anything delivered to them on-demand. Joining forces with Uber will continue that mission as we continue to build Postmates while creating an even stronger platform that brings this mission to life for our customers. Uber and Postmates have been strong allies working together to advocate and create the best practices across our industry, especially for our couriers. Together we can ensure that as our industry continues to grow, it will do so for the benefit of everyone in the communities we serve,” said Postmates Co-Founder and CEO Bastian Lehmann.

Main image credits: rafapress/Shutterstock

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After losing Grubhub, Uber reportedly hails Postmates

Uber has reportedly made an offer to buy food delivery service Postmates, according to The New York Times.

According to the Times, the talks are still ongoing and the deal could fall through.

For those that have been paying attention to Uber, this appetite is not new, albeit consistent. A little over a month ago, the ride-hailing company was reportedly pursuing an acquisition of Grubhub,  another food delivery company. Grubhub was ultimately acquired by Just Eat Takeaway in a $ 7.3 billion deal, but only after the deal with Uber fell through over a variety of concerns.

Food delivery market has set to benefit largely from the COVID-19 pandemic, as stores remain shuttered or switch operations to takeout only. Latest earnings from the public ride-hailing company show that its ride-hailing business is slowing while its food delivery service is growing like hell. Gross bookings for Uber Eats last quarter were $ 4.68 billion.

So even though Uber still loses a ton of money ($ 2.94 billion including all costs), its Uber Eats growth is staggering. And the green shoots might be fueling some of this interest in other competitors.

Sources close to Uber told TechCrunch that regulatory concerns scuttled the company’s bid for GrubHub, but its chief executive later said the JustEat deal was better.

If regulatory concerns were an issue, Postmates may make a better fit.

With a valuation of $ 2.4 billion, Postmates is significantly smaller than Grubhub. And while the company filed to go public nearly 16 months ago, it held off eventually citing “choppy market” conditions.

So if Uber Eats and Postmates combined, the result would still be smaller than Doordash’s market hold, but would be competitive nonetheless. DoorDash, last valued at $ 13 billion, confidentially filed for an IPO nearly four months ago. 

Also, Postmates delivers more than just food.

If the merger goes through, the food delivery race would get refueled in an interesting way: Uber Eats and Postmates versus Grubhub and Takeaway versus DoorDash .

Postmates declined to comment on rumors or speculation. Uber did not immediately respond to a request for comment.

Startups – TechCrunch

The Station: Spin heads to Europe, Just Eat Takeaway gobbles up Grubhub and a drive in a Bentley Flying Spur – TechCrunch

The Station: Spin heads to Europe, Just Eat Takeaway gobbles up Grubhub and a drive in a Bentley Flying Spur  TechCrunch
“startups when:1d” – Google News

Just Eat Takeaway beats Uber, gobbles Grubhub in a €6.5B deal

In a slew of events since past couple of days, it has been confirmed that Just Eat Takeaway and US-based food delivery app Grubhub have entered into a definitive agreement. Now, Just Eat Takeaway is to acquire 100% of the shares of Grubhub in an all-stock transaction — a €6.5 billion deal — to create the world’s largest online food delivery company outside of China with customers in 25 countries.

Just yesterday, Just Eat Takeaway.com confirmed the tech media through a press release that the company was in advanced talks to buy Grubhub in an all-stock deal. Initially, tech giant Uber was likely in discussions with Grubhub about a deal. 

The Transaction represents Netherlands-based Just Eat Takeaway.com’s entry into online food delivery in the US and builds on the strategic rationale for its recent merger with Just Eat. The Combined Group will be built around four of the world’s largest profit pools in online food delivery including US, UK, the Netherlands and Germany, increasing the Combined Group’s ability to deploy capital and resources to strengthen its competitive positions in all its markets. 

Under the terms of the Transaction, Grubhub shareholders are expected to own ADRs representing approximately 30.0% of the Combined Group (on a fully diluted basis).  On completion, Matt Maloney, CEO and founder of Grubhub, will join the Just Eat Takeaway.com Management Board and will lead the Combined Group’s businesses across North America and two current Grubhub Directors will join the Just Eat Takeaway.com Supervisory Board.

The deal comes less than six months after Takeaway.com and London-based Just Eat merger

Jitse Groen, CEO and founder of Just Eat Takeaway.com, said: “Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents. Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China. We look forward to welcoming Matt and his team to our company and working with them in the future.” 

Matt Maloney, CEO and founder of Grubhub, commented: “When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S. My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America. I’ve known Jitse since 2007 and his story is much like mine. Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world. We could not be more excited.”

The Combined Group will be headquartered and domiciled in Amsterdam, the Netherlands, with its North American headquarters in Chicago and a significant presence in the UK.

Main image credit: Koshiro K/Shutterstock

Stay tuned to Silicon Canals for more European technology news

The post Just Eat Takeaway beats Uber, gobbles Grubhub in a €6.5B deal appeared first on Silicon Canals .

Startups – Silicon Canals

Just Eat Takeaway beats Uber, gobbles Grubhub in a €6.5B deal

In a slew of events since past couple of days, it has been confirmed that Just Eat Takeaway and US-based food delivery app Grubhub have entered into a definitive agreement. Now, Just Eat Takeaway is to acquire 100% of the shares of Grubhub in an all-stock transaction — a €6.5 billion deal — to create the world’s largest online food delivery company outside of China with customers in 25 countries.

Just yesterday, Just Eat Takeaway.com confirmed the tech media through a press release that the company was in advanced talks to buy Grubhub in an all-stock deal. Initially, tech giant Uber was likely in discussions with Grubhub about a deal. 

The Transaction represents Netherlands-based Just Eat Takeaway.com’s entry into online food delivery in the US and builds on the strategic rationale for its recent merger with Just Eat. The Combined Group will be built around four of the world’s largest profit pools in online food delivery including US, UK, the Netherlands and Germany, increasing the Combined Group’s ability to deploy capital and resources to strengthen its competitive positions in all its markets. 

Under the terms of the Transaction, Grubhub shareholders are expected to own ADRs representing approximately 30.0% of the Combined Group (on a fully diluted basis).  On completion, Matt Maloney, CEO and founder of Grubhub, will join the Just Eat Takeaway.com Management Board and will lead the Combined Group’s businesses across North America and two current Grubhub Directors will join the Just Eat Takeaway.com Supervisory Board.

The deal comes less than six months after Takeaway.com and London-based Just Eat merger

Jitse Groen, CEO and founder of Just Eat Takeaway.com, said: “Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents. Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China. We look forward to welcoming Matt and his team to our company and working with them in the future.” 

Matt Maloney, CEO and founder of Grubhub, commented: “When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S. My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America. I’ve known Jitse since 2007 and his story is much like mine. Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world. We could not be more excited.”

The Combined Group will be headquartered and domiciled in Amsterdam, the Netherlands, with its North American headquarters in Chicago and a significant presence in the UK.

Main image credit: Koshiro K/Shutterstock

Stay tuned to Silicon Canals for more European technology news

The post Just Eat Takeaway beats Uber, gobbles Grubhub in a €6.5B deal appeared first on Silicon Canals .

Startups – Silicon Canals

Just Eat Takeaway confirms it’s gobbling up Grubhub in a $7.3B deal

Consolidation in the world of on-demand food ordering and delivery continues apace. Today, Just Eat Takeaway — the European company that only just got its own $ 7.8 billion merger approved by regulators in April of this year — officially announced that it has reached an agreement to acquire Grubhub in the U.S. for an enterprise value of $ 7.3 billion.

The company said the combined operation — which processed 593 million orders in 2019 — will have over 70 million combined active customers globally.

Under the terms of the deal, Grubhub shareholders will be entitled to receive American depositary receipts (“ADRs”) representing 0.6710 Just Eat Takeaway.com ordinary shares in exchange for each Grubhub share, representing an implied value of $ 75.15 for each Grubhub share (based on the undisturbed closing price of Just Eat Takeaway.com on June 9, 2020 of €98.602), the companies said. This gives Grubhub a total equity consideration (on a fully diluted basis) of $ 7.3 billion.

Matt Maloney, CEO and founder of Grubhub, will join the Just Eat Takeaway.com management board and will lead the combined group’s businesses across North America. Jitse Groen, CEO and founder of Just Eat Takeaway.com, will lead the combined business globally.

“Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents. Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector. I am excited that we can create the world’s largest food delivery business outside China,” Groen said in a statement. “We look forward to welcoming Matt and his team to our company and working with them in the future.”

“When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S. My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America,” Maloney said in a statement. “I’ve known Jitse since 2007 and his story is much like mine. Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favourite local restaurants in North America and around the world. We could not be more excited.”

The deal caps off a tumultuous period for Grubhub, which as Maloney noted was also created through a combination with another rival, Seamless. The company has been in play for months and until just days ago was in acquisition talks with Uber Eats.

Talks with Uber broke down and the deal with Just Eat Takeaway came together.

“Like ridesharing, the food delivery industry will need consolidation in order to reach its full potential for consumers and restaurants,” an Uber spokesperson said in an emailed statement. “That doesn’t mean we are interested in doing any deal, at any price, with any player.”

Online food delivery has been a tough gig: on one hand, very popular with consumers, but on the other, an extremely commoditised and competitive business, where companies need to spend huge amounts of money to gain and keep customers.

One solution to that cycle has been to take out rivals and get better economies of scale on operations. This has been the route so far with Just Eat Takeaway and Grubhub, which combined say they will be profitable and can now focus on improving margins further.

But for the others in the space, the big question now will have to be: which players will consolidate next? In the US, in addition to Uber Eats, there is also Postmates and Doordash, while the European market has Deliveroo, in addition to a plethora of smaller players in both markets.

Startups – TechCrunch

Uber shares tumble 5% as reports indicate it will lose Grubhub deal to European rival

Update: Just Eats Takeaway confirmed today in a release that “it is in advanced discussions with Grubhub regarding an all-share combination of Just Eat Takeaway.com with Grubhub .” More when we have it.

Reports this morning indicate that Uber, the American ride-hailing giant with a global footprint, will lose out on its attempt to buy Grubhub, an American food ordering and delivery service. Uber competes with Grubhub domestically with its Uber Eats service; a tie-up between the two could have given Uber suffocating market share in the United States, and thus improved economics.

Losing Grubhub to European-rival Just Eat Takeaway — the Wall Street Journal broke the news — is difficult news for Uber. Its shares are off nearly 5% today after the news while Lyft, its local rival in ride-hailing, is off a more modest 2.5%.

Reports last week named two European companies as potential acquirers of the American company; the story of Uber losing out to a different company in its pursuit of Grubhub intensified this morning when CNBC reported that the ride-hailing company could drop its bid over anti-trust concerns.

Investors are less than enthused that Uber failed to close the Grubhub deal, if reports hold up.

The why is simple enough: Without Grubhub, Uber Eats is merely another money-losing food delivery service that has a long maturity cycle ahead of it before it helps lower its parent company’s unprofitability. Ride-hailing, Uber’s traditional bread-and-butter, and source of positive contribution margin, is currently recovering from pandemic-driven lows.

But without Grubhub and a greater ability to squeeze money from restaurants that more market might have afforded Uber, its near-term economics may prove slow to improve. Ride-hailing is coming back, but is still generating revenues lower than from year-ago totals.

With Uber Eats putting up around $ 100 million in negative adjusted EBITDA each month, food delivery is little help to the unprofitable megacorp.

More when the deal is announced today, if it is as currently anticipated.

Startups – TechCrunch