Takeaway.com shares dip as U.S. growth stalls

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Amsterdam (Businesshala) – Shares of the online food delivery company fell on Wednesday, with orders in the United States rising just 3% compared to expected third-quarter orders at Just Eat Takeaway.com.

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Shares of the company, which completed a $7.3 billion purchase of US peer GrubHub in June, fell 4.4% to 62.11 euros at 0755 GMT, after losses this year posted more than 30%.

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Total orders grew 25% in the quarter to 266 million, which is less than the 35% growth expected by ING Bank analysts.

Growth was 51% in the company’s largest market, the UK, but was weakest in the United States, which is now its second largest market.

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GrubHub chief executive Matt Maloney said last week that he intended to leave in December, and Just Eat Takeaway said on Wednesday that it had launched “a reform program refocusing the company on GrubHub’s strongholds.”

In a statement, Group CEO Jitse Groen said: “With most of the world returning to pre-pandemic life, our growth remains strong in the third quarter of 2021. Just Eat Takeaway.com is well positioned for our traditional growth seasons, autumn and winter.”

In August, GrubHub suffered a setback when New York City, its largest US market, limited commissions and 15% of food order delivery rival restaurants can charge for using its platform.

Takeaway competes with Uber Eats, and Door Dash in the United States, and Deliveroo and Delivery Hero in Europe.

The company on Wednesday reiterated its full-year forecast for a loss before interest, tax, depreciation and amortization of 1%-1.5% on a gross transaction value of 28-30 billion euros (32-$35 billion) for 2021. 280-380 million euros.

In August, Takeaway reported an EBITDA loss of 190 million euros for the first half, but said that number is expected to improve in the second half.

Gross transaction value for the third quarter, a common measure for e-commerce companies, increased by 6.8 billion euros, or 21%, bringing the nine-month total to 20.9 billion euros.

($1 = 0.8657 Euro)

Reporting by Toby Sterling Editing by Kim Coghill and Mark Potter

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