(Technical rehearsal)
July 6 (Reuters) – Amazon on Wednesday agreed to take a 2% stake in Grubhub, the struggling U.S. subsidiary of meal delivery specialist Just Eat Takeaway.com ().
The deal is a relief for Just Eat Takeaway, whose stock has fallen 70% this year. The group’s shareholders are demanding that he sell or find a partner for Grubhub, bought last year for 5.8 billion dollars (5.65 billion euros).
In a note on the deal, JP Morgan analysts believe it will bring new customers to Grubhub and strengthen Grubhub’s position in the United States, similar to Amazon’s partnership in Britain with Deliveroo. rival of Just Eat Takeaway.
The Just Eat action rose at the end of the morning by around 17% in Amsterdam, to 16.06 euros.
Under the deal Amazon announced on Wednesday, as part of its Prime Day promotion for July, the e-commerce giant’s customers will get free shipping on orders over $12 (11 70 euros) in the 4,000 cities where Grubhub is present.
The deal is expected to expand the customer base of Grubhub, which is losing market share to Doordash and Uber Eats as the impact of the COVID-19 pandemic fades.
In exchange, Amazon will receive 2% of Grubhub’s shares, and an additional 13% of shares if the operation brings enough customers to Grubhub.
“The deal is expected to expand Grubhub+ subscribers, while being neutral to Grubhub’s earnings and cash flow in 2022, and accretive to Grubhub from 2023,” Just said. Eat Takeaway in a statement.
Grubhub’s gross assets were 6.5 billion euros at the end of 2021, and Grubhub posted a pre-tax loss of 403 million euros last year, according to Just Eat Takeaway. (Report Elena Vardon, Piotr Lipinski, Toby Sterling; French version Charlotte Lavin, edited by Jean-Stéphane Brosse)