Shares fall further as the meal delivery platform reveals a fall in orders and reveals it's in talks to offload its big $7.3bn bet on Grubhub, allowing Just Eat to concentrate on its core market of Europe.
Just Eat revised down a key metric on expected sales and said it was in talks with potential buyers for GrubHubJust Eat Takeaway.com has downgraded its annual growth expectations while reporting a fall in orders during the first three months of its financial year, sending shares plummeting.
Europe's largest meal delivery platform also revealed it had bowed to investor pressure on the future of Grubhub, the US business it bought last year for $7.3bn, saying it was considering a sale and was in talks with a number of potential buyers. The group's market value has taken a hammering since the deal completed in June - with shareholders in the sector concerned about post-pandemic momentum and tougher competition.The likes of Deliveroo, Just Eat and Uber Eats all saw a surge in demand during the pandemic but that may now wane. Pic: AP
Shares - down 46% this year alone ahead of the first quarter trading update - fell 2.5% in early deals at the market open on Wednesday.Just Eat told investors it now expected"mid-single digit growth" for its gross transaction value this year - a measure the total value of food ordered and delivered - instead of the"mid teens" predicted just last month.
The slowdown is likely a consequence of economies continuing to awaken from COVID-19 restrictions but also the growing competition for consumer spending as households globally battle higher bills for things like energy and food.
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