What Does The Sale Of Grubhub Mean For Your Quick-Service Restaurant Delivery Business?

The details

Just Eat’s deal to sell Grubhub to Wonder is expected to close in the first quarter of 2025, provided it receives the usual regulatory approvals. Just Eat said it would retain no material liabilities associated with Grubhub.

Jitse Groen, the Chief Executive of Just Eat Takeaway.com, explained the sale with the statement: "The sale of Grubhub to Wonder will increase the cash generation capabilities of Just Eat Takeaway.com and will accelerate our growth.

Wonder is a New York-based chain of fast-casual restaurants led by former Walmart executive and serial entrepreneur Marc Lore. Unlike traditional third-party delivery platforms, Wonder brings multiple kitchens under one roof, enabling Multi-Restaurant Ordering. This system allows customers to order from up to 30 restaurants in a single transaction, with each dish prepared to order and timed to finish simultaneously. By centralizing the preparation process, Wonder reduces costs and avoids some logistical issues. It's important to note that the restaurants currently featured by Wonder are, in effect,  just menu concepts linked to a group of chefs. The brands do not exist outside of the Wonder ecosystem.

The goal: Super app for mealtime

"Wonder's acquisition of Grubhub continues our mission to make great food more accessible. As we enhance our customer experience with selection, speed, and variety, we're excited to soon offer a curated selection of Grubhub's restaurant partners directly in the Wonder app, alongside our owned and operated restaurants and meal kits," said Marc Lore, Founder and CEO of Wonder. "Bringing Wonder and Grubhub together is the next step in our vision to create the super app for meal time, re-envisioning the future of food delivery."

What is a super app?

A super app is an all-in-one mobile application that integrates multiple services and functions into a single platform, eliminating the need for users to switch between different apps. It combines features like communication, commerce, financial services, entertainment, and more to create a seamless and unified digital experience. Examples include:

• Rappi (Latin America): Initially offering food delivery, in 2019, it expanded to a wide range of other services, including finance, e-commerce, travel, and insurance. 

• Grab (Southeast Asia): Started as a ride-hailing app, it now offers food delivery, financial services, travel booking, and grocery delivery.

• Gojek (Indonesia): The app combines ride-hailing, food delivery, bill payments, shopping, and other services.

How does Wonder benefit from Grubhub?

Though it trails significantly behind DoorDash and Uber Eats, Grubhub is still considered a leading US food ordering and delivery marketplace. Grubhub features 375,000 merchants in over 4,000 US cities. Its logistics network covers the vast majority of the US population with on-demand delivery from independent restaurants, leading national restaurant brands, and convenience, grocery, pet and office supply retailers.

With the acquisition by Wonder, all Wonder locations will be available on Grubhub for third-party delivery.

Grubhub CEO Howard Migdal gave his thoughts on the acquisition: "Since our earliest days, Grubhub has helped restaurants open their doors to new customers while introducing diners to new cuisines. That's why I'm confident that Grubhub will complement Wonder's mission to make great food more accessible and that together, we will create remarkable dining experiences for more customers across the country."

The Takeaway: What does this mean for QSR operators?

While the long-term impacts of Wonder's acquisition of Grubhub remain uncertain, it's clear that if Wonder stays focused on expanding its multi-restaurant model, QSR pickups are unlikely to be a priority. We predict either a deprioritization of QSR pickups, such as placing them below Wonder-owned properties inside the Grubhub app, or the possibility of discontinuing them altogether.
Wonder's expansion could also mean increased competition for dinners in your areas, although Wonder's target market might differ slightly from your QSR's.

Our recommendation

Strengthen your relationship with other third-party delivery platforms. Wonder will likely prioritize its offerings on the Grubhub app, which could lead to a decline in Grubhub orders for QSRs, leaving platforms like DoorDash and Uber Eats to fill the gap.

Final thoughts

Wonder's acquisition underscores the evolution of food delivery services into more centralized and curated ecosystems. For operators, keeping a close eye on emerging trends and diversifying delivery strategies will be critical in adapting to this rapidly changing landscape.