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Just Eat Takeaway records €3bn hit on its US Grubhub business

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Just Eat Takeaway.com NV wrote down the value of its US-based Grubhub unit by €3bn ($3.1bn) amid plunging stock market valuations and rising interest rates, a sign of the difficulty facing the business after it was acquired for about $7.3bn last year.

The Amsterdam-based company also reported that orders slowed in the first half of the year after customers returned to restaurants and shops following Covid-19 lockdowns. Total orders on its platform decreased 6.8% from the same period a year ago to 509.4 million, the company said in a statement on Wednesday.

Just Eat struggled in the first half of the year, announcing plans to eliminate staff in France and scale back growth plans. Delivery companies industry wide have been grappling with slowing growth. Rival Deliveroo Plc cut its estimates for order growth this year and Gopuff said in July that it was closing warehouses and cutting jobs.

Still, the cutbacks helped the company make progress toward reaching profitability goals.

"Our path to profitability is accelerating," Chief Executive Officer Jitse Groen said in the statement. He added that the company expects to generate adjusted earnings across the entire business in 2023, with its three largest geographies reaching that threshold in the past quarter.

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