It might come as second nature to many to order takeout through an app on their phones and have it delivered straight to their doorstep, especially when they are too lazy to pick it up themselves.
However, it wasn’t that long ago that the only way to get takeout was to pull out the Yellow Pages and call the restaurant directly on the home phone or personally drive to the location.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
Nowadays, getting takeout is incredibly convenient and simple thanks to the multiple food delivery apps out there, such as Uber Eats, DoorDash, Postmates, and Grubhub.
Related: Chipotle makes pricing pledge to customers
No matter what one might be craving, people can easily look up a restaurant and, with a few clicks, have a delicious meal delivered without having to move more than a finger or get off the couch.
A man eats a burger.
picture alliance/Getty Images
Grubhub struggles financially amid growing competition in the food delivery sector
Grubhub was previously owned by Just Eat Takeaway (JTKWY) , a Dutch-based online food ordering and delivery company with multiple platforms worldwide.
Although Grubhub is a well-known food delivery app in North America, its parent company has struggled for a few years to keep it alive due to the growing competition among similar services.
According to Just Eat Takeaway’s earnings for the full year of 2024, the company’s total revenue declined by 1% compared to the year prior, with its North American market down by 8%, making it its second least lucrative region.
Related: Taco Bell launches new menu item customers can crunch
After actively seeking a buyer for a few months, Just Eat Takeaway announced last November that it had entered a definitive agreement to sell Grubhub to Wonder, a food delivery and pickup company with multiple food halls and kitchens. This sale would allow Just Eat Takeaway to invest in other countries where business could be more lucrative since most of its revenue comes from the Northern European market.
Two months later, Wonder completed its acquisition of Grubhub for $650 million, including all of its assets and material liabilities. This deal effectively terminated Just Eat Takeaway’s nearly five-year ownership of the delivery service.
Grubhub announces the termination of approximately 500 employees
Grubhub announced it would lay off around 500 employees across all teams and stated that the impacted workers would be notified after the announcement was made public.
This startling announcement comes nearly two months after Wonder acquired Grubhub. The delivery service claims this decision was made to facilitate better integration with its new parent company.
“These changes will position Grubhub to maximize our potential, create opportunities for leaders at Wonder and Grubhub to take on expanded roles and responsibilities in support of our shared vision, and enable us to focus our resources on our most important business objectives,” said Grubhub CEO Howard Migdal in the announcement.
More Retail News:
Walmart releases first of its kind product consumers will loveSubway announces return of iconic value deal that will save people money Target announces major deal to win back shoppers
Additionally, Grubhub announced it will present its new business strategy for the year this month.
“Looking ahead, I am confident that, together with Wonder, we are in a strong position to disrupt the restaurant industry and redefine how people think about food delivery. While today is a difficult day, I have no doubt in our future and what we will accomplish together. Thank you for your resilience and commitment to Grubhub,” said Migdal.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
