A recent report from Dutch firm Just Eat Takeaway indicates that fewer Americans are turning to Grubhub to order their meals. This is reflected in a 6% decrease in order volume across the business, with a 12% drop specifically in North America, from 74.1 million orders in 2023 to 63.9 million in the current year. The decline was also evident in gross transaction value (GTV), which decreased by 11% in North America, while increasing by 11% in the U.K. and Ireland.
Despite this downward trend, 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. Despite this growth, consumers are facing higher prices at restaurants, with food consumed away from home now being 4.2% more expensive than a year ago.
In addition to these challenges, Just Eat has announced the end of its operations in New Zealand due to it being a small market where the company was not a leading player. The decision will impact the local staff but was described as necessary due to its insignificance as compared to other markets such as Australia where Just Eat remains a significant player and will continue its operations there