Technology

Wonder completes acquisition of Grubhub for $650M

The food hall/delivery chain founded by Marc Lore plans to incorporate the delivery service into a “super app” for meals.
Grubhub was sold by Just Eat Takeaway.com, its owner since 2021. | Photo courtesy of Grubhub

Grubhub officially has a new owner.

Wonder, the New York-based food hall/delivery chain, completed its acquisition of the third-party delivery company Tuesday for $650 million.

The seller was Just Eat Takeaway.com, the European delivery conglomerate that bought Grubhub in 2021 for $7.3 billion. It had been trying to sell all or part of Grubhub for several years.

Wonder has said that combining its delivery-focused food halls with Grubhub’s delivery and restaurant network is part of its vision to create a “super app” for meals. Select Grubhub restaurants will be available in Wonder’s app, and Wonder’s in-house brands will be listed on Grubhub.

Wonder could also rely on Grubhub’s nationwide delivery network as it expands beyond its core market in the Northeast in the coming years. It currently operates 35 locations in five states. Each location serves food from a selection of nearly 30 restaurant concepts.  

Wonder was founded in 2018 by Marc Lore, the founder of Diapers.com and Jet.com, with the goal of improving food delivery. It has since raised $1.5 billion to help it grow. Grubhub is its third acquisition; it previously acquired meal kit company Blue Apron and delivery service Relay.

The staggering drop in Grubhub’s value since 2020 reflects its struggles over the past four years. It has fallen behind competitors DoorDash and Uber Eats into a distant third in the U.S. delivery market. It has been hampered in part by a cap on delivery fees in its key market of New York City. 

But it remains one of the only companies of its kind, with more than 375,000 business listed on its marketplace and more than 200,000 couriers in cities across the country. The Chicago-based company was founded in 2004 and was one of the first apps that allowed customers to order online from restaurants. 

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