In recent times, there has been a decline in the number of Americans turning to Grubhub for their meal deliveries, as indicated by the order volume reported by Just Eat Takeaway’s parent company. The decline was seen across the business, with a 6% decrease in order volume recorded in North America alone, from 74.1 million orders in 2023 to 63.9 million in the current year. Additionally, Gross Transaction Value (GTV) decreased by 11% in North America while increasing by 11% in the U.K. and Ireland. This downward trend follows a similar decline observed in the previous quarter.
Despite this challenge, management during an earnings call stated 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. Despite this growth, consumers are facing higher prices at restaurants with food consumed away from home being 4.2% more expensive than a year ago.
In addition to these challenges, Just Eat has announced its end of operations in New Zealand due to being a small market where it was not a leading player. The closure will impact local staff but was described as necessary decision on behalf of the company’s future growth plans. On a positive note, Just Eat remains significant player in Australia and will continue its operations there.
In conclusion, while there have been declines in order volume and GTV for Grubhub’s North American operations and higher prices for consumers consuming food away from home, there are still opportunities for growth through campus ordering offerings that can drive revenue for restaurants and ultimately grow Just Eat’s business footprint globally