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Just Eat Takeaway to acquire Grubhub for $7.3B

nytimes.com

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Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#91

Post by saos »

00deadbeef wrote: post #87
saos wrote: post #65

Wow. I thought Uber were going for it? The food delivery market share war is really interesting. For folks in the UK. The Competition Markets and Authority (CMA) delayed a decision on whether Amazon could invest $500m in Deliveroo as of yesterday[1]. Deliveroo are more established in Europe but I can now see the CMA approving Amazon investment into Deliveroo[2]. Why? Just Eat provided evidence to the CMA recently on…

Just Eat are getting too big. They destroyed Hungry House by buying it a few years ago. This was before Deliveroo and Uber Eats were known to most people. Seems like Just Eat are afraid of competition.

I was not aware of Hungry House. but you're right! They purchased them too [1]. Yeah it feels like a "screw it" lets do this type of move from Takeaway.com/Just Eat. From my research it looks like Just Eat are threatened by competition and re-entry into the market from Amazon. $500m investment could really push Deliveroo on. I see similaries between Deliveroo and Amazon in wanting to provide very quick delivery service.

https://www.gov.uk/cma-cases/just-eat-hungryhouse-merger-inq...

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#92

Post by bluehatbrit »

jbj wrote: post #85

I am a bit confused by the legal structure of this business: Article states that just eat is dutch, but it is not based in the Netherlands. It is a UK company that used to be based in Denmark. According to Wikipedia it recently merged with Takeaway but is still operating as a subsidary with its own brand. https://en.wikipedia.org/wiki/Just_Eat

Just Eat was a UK based company which was public on the London Stock Exchange (LSE). It was then bought out by Takeaway.com (Thuisbezorgd.nl) based in the Netherlands and the company is now on the LSE (in the FTSE 100) and Euronext Amsterdam.

Just Eat was originally founded in Denmark but moved to the UK

Just Eat was founded in 2000 in Denmark, then moved to the UK in 2005. It floated on the London Stock Exchange in 2014 and acquired by Takeaway.com (Thuisbezorgd.nl). It's now Just Eat Takeaway.com and trades on the LSE and Euronext. The head office is in Amsterdam now as well, but the whole UK engineering team is still in London and Bristol in the UK.

So the parent company is Just Eat Takeaway.com but then it's Just Eat in the UK (and much of Europe), Takeaway.com in the NL (well, Thuisbezorgd.nl), and a few other names around the globe like Menulog (AU/NZ), and Skip the Dishes (CA).

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#93

Post by JAlexoid »

ss3000 wrote: post #64
cordite wrote: post #23

Earlier quoted context omitted.

Have you tried pizza pie? But really, the economics are all in operations and scale. Some people may complain that they can’t get delivery 10 miles away from a restaurant.. but they aren’t willing to tip or pay higher for the back and forth a driver must do to earn more than it costs to pay them. Cutting to 5 or even 3 miles for delivery ranges makes a big difference for orders per hour.

> they aren’t willing to tip I wish everybody would stop tipping. If nobody subsidized delivery workers' wages with tips, delivery companies would have to start paying workers enough to make it actually worth their time to begin with, and pass those costs onto VCs and eventually consumers. More reliable income for the delivery workers, more transparent delivery pricing for consumers. What's not to like? A similar dyn…

It's a service and services need clear pricing.

Tipping isn't bad, because of it's infrequency. It's bad because it's unclear and hidden.

Consumer service business cannot pay their service employees more, than what consumers are willing to pay for the services. In most cases the business is just a venue for consumers to acquire services from individuals. In restaurants the individuals are waiter.

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#94

Post by JAlexoid »

Melting_Harps wrote: post #61
anticsapp wrote: post #40

Earlier quoted context omitted.

I wonder what would happen if I signed up for Doordash as a driver, picked up as many orders as I could in one evening, and just donated the food to the poor and needy? How long until I'm booted and banned as a driver?

Disclaimer: I'm not advocating this and I'm in no way condoning such behaviour with the following. From what I saw when they did updates, usually on Friday evenings during the dinner rush no less, the system would crash and result in any and all current orders being essentially undeliverable as the app crashed and often you couldn't log in or out of the system nation-wide for 30 mins to hours later. Furthermore, as I…

I'm highly sceptical about his prospects, mostly because of the upfront cost of being moral.(you'd have to pay $15/hr to a driver in NYC)

Unless he decided to go immoral and shaft the delivery people.(Having seen how much abuse undocumented waiters and delivery people suffer from the restaurants)

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#95

Post by JAlexoid »

tonyedgecombe wrote: post #73
echelon wrote: post #29

Earlier quoted context omitted.

> Mergers and acquisitions rarely work out Instagram DoubleClick NeXT Here are some businesses off the top of my head that are thriving because of their acquisitions.

From https://www.cbsnews.com/news/why-mergers-fail/ One KPMG study found that 83 percent of these deals hadn't boosted shareholder returns, while a separate study by A.T. Kearney concluded that total returns on M&A were negative.

There's a presumption that companies engaged in M&A would have been executing as well as historically.

Basically - it's an unscientific opinion

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#96

Post by JAlexoid »

michaelt wrote: post #90
hedora wrote: post #78

Earlier quoted context omitted.

Name one decent Disney animated movie that was released after Pixar was founded (excluding Pixar films post-acquisition). There aren’t many because most of Disney’s talent left around when Pixar was founded. Without movies to continuously hook new kids, their entire empire is a house of cards.

I don't know if this supposed to be an argument that acquisitions are good, or that they're bad?

The argument is that HBR's article is just speculation, nothing more.

Some mergers have literally saved companies, some have ruined them, some are considered 'unsuccessful' for esoteric reasons and others successful for purely numeric ones.

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#97

Post by markus92 »

ErikHuisman wrote: post #76
vikramkr wrote: post #2

I read an article with some details from the Uber side on why that deal fell through. I never thought I'd read an article where Uber seemed to be on the ethical right side of things... "Uber also believed it would would need to stop several undesirable business practices from Grubhub, including phone charges and cybersquatting, or buying domain names with the intent to profit from them. Grubhub has denied cybersquatt…

Aah thuisbezorgd/takeaway does squad domains so grubhub will fit right in.

You got a source for that or some other reading material? Never witnessed it myself so just curious.

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#99

Post by [deleted] »

vikramkr wrote: post #19
crazygringo wrote: post #4

Genuine question: why? I completely understand acquisitions that create value by providing economies of scale, monopoly power or network benefits, or diversify or complement a company's activities. But for a European market leader to buy an American market leader in what is ultimately an extremely local business... I see no real added benefit here. Few further economies of scale when you're already at continent-size…

Just Eat Takeaway seems to be a recent creation through the takeover of just eat by takeaway. With another acquisition so soon, I think you'd find some answers if you look at how management there is compensated. If you have a willing/uninvolved board (or a board that still loves the idea of rollup companies that grow through M&A), and aquisitions help you hit a few targets (total revenues, total market cap) that get…

[deleted]

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#100

Post by JAlexoid »

saos wrote: post #66
crazygringo wrote: post #4

Genuine question: why? I completely understand acquisitions that create value by providing economies of scale, monopoly power or network benefits, or diversify or complement a company's activities. But for a European market leader to buy an American market leader in what is ultimately an extremely local business... I see no real added benefit here. Few further economies of scale when you're already at continent-size…

Competition... monoply. Ubers Eats and Deliveroo have massive control. I think what many of the players are concerned about is Amazon entering the market via Deliveroo investment of $500m. https://www.gov.uk/cma-cases/amazon-deliveroo-merger-inquiry

FYI Amazon already left the "hot" food delivery market. Amazon Restaurants was killed
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