NEW YORK (AP) — European food delivery giant Just Eat takeaway.com Sells Grubhub for $650 million; that’s a tiny fraction of the billions it spent buying the U.S. platform just three years ago.

Wonder Group, the New York-based food delivery company that touts “fast fine dining”, will become the new owner of Grubhub. Wonder will acquire Grubhub from Just Eat, under terms of the deal announced Wednesday takeaway.com for $150 million in cash and $500 million in senior notes.

That’s much less than the price tag on Grubhub’s last sale. In 2020, in the early days of the COVID-19 pandemic and when demand for takeaway food increased, Just Eat Agreed to buy Grubhub for $7.3 billion – reportedly beat Uber to merge in a transaction that would later be completed in 2021.

Amsterdam-based Just Eat takeaway.com On Wednesday, he acknowledged that he has been “actively exploring” a partial or full sale of Grubhub for some time, citing previous announcements from the company. Just Eat takeaway.com He added that selling Grubhub to Wonder would increase growth, increase cash generation and support investment in countries “where it has the greatest competitive advantage.” The company currently operates in 18 other countries outside the United States.

The transaction is expected to be completed in the first quarter of 2025, subject to regulatory approval and other customary conditions. When Done, Just Eat takeaway.com He said there will be no financial liability related to Grubhub.

“This deal gives Grubhub and its employees the right home,” Just Eat said takeaway.com CEO Jitse Groen said in a statement. The company’s shares were up more than 15% in midday trading Wednesday.

Wonder and Grubhub CEOs Marc Lore and Howard Migdal also chimed in on Wednesday; both stated that the deal would help Wonder’s mission to “make great food more accessible” and improve customer experiences.

Founded by Lore, Wonder bills itself as a “new kind of food hall,” offering made-to-order dishes from well-known chefs and restaurants. The New York startup was once known for its fleet of delivery trucks, but then transition has been made towards more of a bricks and mortar approach. Its online offerings have also increased. Wonder last year acquires meal kit company Blue Apron For $103 million.

Headquartered in Chicago, Grubhub operates in more than 4,000 U.S. cities with more than 375,000 sellers and 200,000 delivery partners nationwide to date. According to Just Eat takeaway.comThe platform generated 237 million orders last year with a gross transaction value of 8.06 billion euros (about $8.53 billion).

takeaway.comIt and Grubhub, which merged with Just Eat in 2020, were both founded in the early 2000s, making them some of the first to enter the industry. However, competition has increased rapidly as now-popular platforms such as Uber Eats and DoorDash have joined the game. Customers switching between apps can also make it difficult to keep sales consistent.

Data analytics firm’s figures as of March 2024 Bloomberg Second Measure Food delivery accounts for only 8% of consumer spending in the U.S., Grubhub showed; That’s much less than DoorDash or Uber Eats. DoorDash is currently winning the “food delivery war,” according to Second Measure, accounting for 67% of sales, followed by Uber Eats at 23%.