Strategy behind blockbuster Grubhub deal: don't deliver

Strategy behind blockbuster Grubhub deal: don't deliver
  • In its $7 billion deal to buy Grubhub, a Dutch food-delivery giant, is betting on a strategy it has relied on for years in Europe: Let restaurants deliver their own food.
  • The rapid deal making has been underpinned by Just Eat Takeaway’s belief that the future of its business lies in having restaurants handle the delivery part themselves, avoiding the costs of building fleets of drivers and cyclists to transport meals to customers.
  • Both Just Eat Takeaway and Grubhub have some driver networks of their own, but their businesses revolve around taking a cut from restaurants and chains that use their websites to advertise and take orders.