Just Eat Takeaway: A Bargain Buy as Food Delivery Market Cools

Just Eat Takeaway.com, the Anglo-Dutch online food delivery giant, has seen its valuation plummet in recent years as the takeaway boom fades. The company, which merged with Takeaway.com in 2020, has struggled with slowing growth, changing consumer behavior, and mounting competition. In February 2025, Prosus, a Dutch technology investor, agreed to acquire Just Eat Takeaway.com for €4.1 billion, valuing the company at €20.30 per share – a 63% premium on its last closing price but a far cry from its peak valuation.



The decline in Just Eat's valuation can be attributed to several factors:

1. Slowing growth and changing consumer behavior post-pandemic: As lockdowns eased and restaurants reopened, order volumes declined, leading to a slowdown in growth for food delivery companies like Just Eat Takeaway (Source: "Post-pandemic slowdown forces Just Eat into strategic retreat").
2. Mounting competition: The food delivery market has become increasingly competitive, with rivals like Uber Eats and Deliveroo putting pressure on Just Eat Takeaway. This competition has led to a decline in order volumes and market share (Source: "Post-pandemic slowdown forces Just Eat into strategic retreat").
3. Strategic missteps: Just Eat Takeaway's acquisition of Grubhub in 2021 for $7.3 billion was later considered a mistake. The company struggled to integrate Grubhub and eventually sold it for just $650 million in 2024, a fraction of the original purchase price (Source: "Grubhub founder made $1bn proposals to buy company back from Just Eat Takeaway").
4. Regulatory challenges: European regulators have been increasingly cautious about consolidation in the digital economy, particularly in sectors where competition is already limited. This regulatory scrutiny may have contributed to the decline in Just Eat Takeaway's valuation (Source: "Regulatory hurdles could complicate the deal").
5. Labor issues and protests: Just Eat Takeaway's relationships with restaurants and delivery drivers have been strained by pay cuts and gig economy working conditions. These labor issues may have negatively impacted the company's reputation and valuation (Source: "Regulatory hurdles could complicate the deal").



Despite these challenges, Just Eat Takeaway.com reported a net loss improvement in 2024, driven mainly by non-cash impairment losses related to Grubhub. The company's adjusted EBITDA improved significantly to €460 million in 2024 from €339 million in 2023, with the largest improvement in the UK and Ireland segment (Just Eat Takeaway, 2024).

Prosus' acquisition of Just Eat Takeaway.com signals a commitment to the food delivery market, despite broader concerns over profitability in the sector. The firm, majority-owned by South Africa's Naspers, has been expanding its portfolio in online consumer services, including fintech and e-commerce. Investors remain wary of the long-term sustainability of food delivery businesses, which operate on razor-thin margins. However, Prosus' aggressive push to consolidate power in the industry may reshape the European food delivery sector and deliver sustainable growth.

In conclusion, Just Eat Takeaway.com's valuation has plummeted as the takeaway boom fades, but the company's strategic initiatives and Prosus' acquisition offer a glimmer of hope for investors. As the food delivery market evolves, Just Eat Takeaway.com must continue to adapt and innovate to maintain its competitive edge.