Dive Brief:
- Grubhub laid off 500 employees on Friday as part of its integration with its new owner Wonder, Grubhub CEO Howard Migdal said in a statement.
- Impacted employees will receive severance and outplacement services.
- The cuts will allow Grubhub to “maximize our potential, create opportunities for leaders at Wonder and Grubhub to take on expanded roles and responsibilities in support of our shared vision, and enable us to focus our resources on our most important business objectives,” Migdal said.
Dive Insight:
Wonder completed its $650 million acquisition of Grubhub in January, ending Just Eat Takeaway’s nearly five-year ownership of the brand.
Since the acquisition, Wonder and Grubhub have been working to align their businesses to “achieve our ambitious mission of becoming the primary destination for mealtime,” Migdal said. Wonder originally said its acquisition of Grubhub supported its goal of uniting convenience, speed and selection of first- and third-party restaurants, groceries and meal kits into a single app.
Grubhub has been working on improving its core business and expanding into new verticals, Midgal said. Last year, it stepped up its grocery delivery through a partnership with Mercato, an e-commerce technology supplier that works with over 950 retailers. In August, it entered a partnership with Albertsons. It increased its hotel partnerships, most recently partnering with Hilton to offer mobile ordering and delivery at over 2,600 hotels. It added on-demand delivery from Office Depot last November, expanding its reach into office supplies retail.
Grubhub also partners with Amazon, allowing Prime members to receive free Grubhub+ memberships. It expanded that deal last year, adding access to Grubhub delivery directly to Amazon’s website and shopping app.
Wonder has been expanding its virtual food hall business as well, landing $700 million in funding last year, with plans to reach 90 units in the Northeast this year. It currently has 38 locations with 14 listed as “coming soon,” according to its website. Wonder also owns Blue Apron, which it bought in 2023.
“Teaming up with Wonder has been a remarkable testament to our progress over the past year, connecting us with a partner who embodies our innovative, entrepreneurial, and competitive spirit and is committed to Grubhub’s success,” Midgal said.
