Dive Brief:
- Grubhub CEO Adam DeWitt has resigned from his position, parent company Just Eat Takaway announced Monday. He will remain with the company until May 1.
- JET appointed Howard Migdal, current CEO of JET’s Canadian subsidiary SkipTheDishes, as EVP of North America and CEO of Grubhub. Steve Puchala, SkipTheDishes’ SVP of growth and restaurant success, will serve as interim CEO for the brand, reporting to Migdal.
- DeWitt, who has been at Grubhub for 11 years, has been CEO since June 2021, when founder Matt Maloney vacated his position. DeWitt has also served as the company’s CFO and president.
Dive Insight:
During DeWitt’s tenure at Grubhub, he led the company through its initial public offering in 2014 and oversaw its acquisition by JET in 2021. The company also grew from $20 million to $2 billion in annual revenue during DeWitt’s time with the delivery platform.
Migdal brings 16 years of food delivery experience to his new post, which includes co-founding Canada’s first national food delivery service, GrubCanada, in 2008.
Grubhub has faced some challenges since its acquisition. JET announced it would explore a full or partial sale of Grubhub last April, and was still considering this move as of January. The company said in August that it reported a $3 billion impairment following its buyout of Grubhub due to a reduction in sector valuation, high interest rates and equity volatility.
Following these moves, Grubhub entered a strategic partnership with Amazon in July to provide Amazon Prime members a free year of Grubhub+ membership. An Amazon subsidiary received at least 2% of Grubhub’s fully diluted common equity as part of that deal.
“The Amazon partnership we entered into during the year has strengthened Grubhub’s competitiveness and represents a significant opportunity for further growth,” JET CFO Brent Wissink said during a March earnings call.
Grubhub continues to scale its non-restaurant business via national partnerships, including deals with RiteAid and Gopuff. JET also reported positive EBITDA growth last year for its North America business, despite negative impacts from fee caps, CEO Jitse Groen said during the earnings call.
