On Thursday, the Amsterdam, Netherlands-based Dutch-dot-com company specialized in online food ordering and home delivery, Just Eat Takeway NV, said that its proposed $6 billion acquisition deal for Grubhub would create a trans-Atlantic online food delivery giant, which in effect would proffer the Dutch-dot-com company an upper hand over the highly congested online food delivery market.
In point of fact, Just Eat Takeway NV’s Grubhub buyout deal would make the Dutch online food delivery company the world’s largest online food delivery business except China ahead of Uber Eats, which had backed off of the Grubhub purchase deal a day earlier.
Aside from that, as of Thursday, the Just Eat Takeway NV Chief Executive Jitse Groen, had secured an antitrust approval for the Takeaway’s all-share takeover bid for Just Eat, while during the bidding process, the Dutch-dot-com company had to beat a rival all-cash buyout bid from the tech titan Prosus NV.
On top of that, when it came to the market shares in online food delivery markets on both EU and the US, Takeway has been competing with Uber Eats, Deliveroo alongside Delivery Hero in the Europe, while in the United States, the company had been taking on Doordash, Uber alongside Postmates, however, none of the aforementioned online food delivery start-ups had made a profit last year and had still been burning cash in order to stay operational.
Takeaway CEO Groen defends Grubhub deal as analysts contemplated the firm overvalued
Meanwhile, adding that the Grubhub buyout deal would make the Dutch online food delivery company a market leader in the industry, Takeaway Chief Executive, Groen said on Thursday, “There are quite some players currently in the food delivery market that are burning cash to push out competitors.
It’s pretty obvious to us that as long as we are large, (profitable at an operating level), and very dominant in the markets that actually matter, that cannot happen to us,” nonetheless, a number of analysts said that the deal would likely to probe the growth limit of an over-crowded online food delivery market.