In a statement released on Sunday, Jitse Groen, CEO of Takeaway.com(online food delivery company), said the company is not planning to sell its subsidiary Grubhub as a result of delisting from the Nasdaq stock exchange.
Food-delivery company Takeaway bought the Grubhub in June for $7.3 billion but has since faced pressure from shareholders. Takeaway is the largest food delivery company in Canada, Germany, and Britain.
It was announced on Tuesday that the Amsterdam-based company would delist its American stock. The company’s shares remain listed on the London and Amsterdam stock exchanges.
An interview with Groen from Dutch television show “Business Class” revealed that this is a cost reduction measure. Various strategic options for the future of the subsidiary are still being considered by the company, he said.
Groen reiterated his prediction that only the biggest players in the food delivery market will ultimately be highly profitable. Despite its size, Takeaway does not rank number one in the United States, where it competes with other companies like Uber and Doordash.
The Takeaway company’s shares ended Friday’s trading session at 38.25 euros, down 6%, meaning that they have lost two-thirds of their value since the company peaked above 109 euros in October 2020.
We need to develop a market position in the same way we have in the Netherlands in order to earn profits,” he said.
The U.S. Grubhub community engages in many discussions. However, if you’re going to talk to people, be sure you’re going to improve the business.”