A recent report from Just Eat Takeaway, the parent company of Grubhub, indicates that there has been a decline in order volume across their business. In North America, there was a 12% drop in orders from 74.1 million in 2023 to 63.9 million in the current year. The gross transaction value (GTV) also decreased by 11% in North America, while increasing by 11% in the U.K. and Ireland. This downward trend follows a similar decline seen in the previous quarter.
Despite this decline, management mentioned during an earnings call that they are still considering the sale of Grubhub. However, there was a positive note regarding Grubhub’s campus ordering offering, which experienced a 28% increase in orders year over year. This segment now accounts for 18.18% of orders in the North America segment and is expected to continue growing in importance.
In addition to these challenges, Just Eat has announced the end of its operations in New Zealand. The decision was explained as due to the country being a small market where the company was not a leading player. The closure will impact the local staff, though it was described as a necessary decision. On the other hand, Just Eat remains a significant player in Australia and will continue its operations there.
The higher prices at restaurants due to food consumed away from home now being 4.2% more expensive than a year ago have also been mentioned as another challenge facing consumers
