The value of an American platform affiliated with “Just Eat” drops to $ 3.1 billion

lowered”Just Eat Eat NV) its US-based unit, Grubhub, is valued at €3 billion ($3.1 billion) amid falling valuations. Stock market and height interest ratesIt is a sign of the difficulties facing the company after it was acquired for nearly $7.3 billion last year.

The Amsterdam-based company said in a statement last Wednesday that orders slowed in the first half of the year after customers returned to restaurants and shops as COVID-19-related closures ended.

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Just Eat struggled in the first half of the year, announcing plans to lay off employees in France and scale back growth plans, and delivery companies in various sectors are grappling with slower growth. The company reduced the competition.DelfroDeliveroo Plc estimates demand growth this year, and Gopuff said in July it was closing warehouses and cutting jobs.

However, employee downsizing and expansion plans have helped the company make progress toward reaching its profitability goals.

“Our path to profitability is accelerating,” CEO Jitze Groen said in the statement, adding that the company expects to achieve adjusted earnings across all parts of the business in 2023, and the company’s three largest geographies reached the profitability threshold last quarter.

key insights

Total orders on the Just It platform declined 6.8% from the same period last year to 509.4 million, down from the 547 million expectations of analysts polled by Bloomberg.

Sales rose to 2.78 billion euros, compared to analysts’ expectations of 2.85 billion euros, and first-half losses narrowed to adjusted EBITDA to 134 million euros.

Just Eat is also exploring a partnership or sale to GrabHub, which it bought through an all-share deal in 2021, as well as looking for buyers for its 33% stake in iFood.

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The company maintained its indicative expectations for the current year, and had previously reduced its forecast for the total value of transactions for 2022, predicting that it will rise by about 5% on an annual basis.

The company also nominated to reappoint its chief operating officer, Jörg Gerberg, following the results of the investigation.

Nor did Chairman Adrian Nunn seek re-election this year after companies that provide proxy services to shareholders criticized the board’s lack of gender diversity and governance.

And on Tuesday, the company launched a pilot in Berlin that delivers 20-minute groceries and ready-made goods from a small urban warehouse known as a “dark store” for stores that cater exclusively to online retailers.

market context

Shares rose 1.9% to 15 euros in Amsterdam morning trading last Wednesday, and the stock is down 61% this year.

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announced “Amazon.comannounced a partnership with GrabHub’s business last month to provide delivery services to Prime users. As part of the deal, Amazon has the option to acquire a stake of up to 15% of Just Eat’s US business.

Groen told reporters at a press conference that the Amazon deal “was not done at the same merger valuation as last year, so it’s a logical consequence of the market environment” that the company would have to post a drop in the value of GrabHub.

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