New Report Reveals Grubhub Order Volume Decline in North America
Just Eat Takeaway, the parent company of Grubhub, has released its latest earnings report. The food delivery platform saw a 6% decline in order volume across the business, with a 12% drop specifically in North America. This led to a decrease in orders from 74.1 million in 2023 to 63.9 million this year. Despite the overall decline in orders, there was a bright spot in Grubhub’s campus ordering offering, which saw orders increase by 28% year over year. This segment now accounts for 18.18% of orders in the North America segment and is expected to continue its growth in the future, becoming a significant part of the business over time.
The growth in the campus ordering segment comes at a time when consumers are experiencing higher prices at restaurants. Recent government data shows that food consumed away from home, such as restaurant meals, is now 4.2% more expensive than a year ago. Despite this, research has shown that a majority of consumers, across different income and demographic levels, still spend on restaurants and bars. However, there is some evidence of financial pressure in this area.
Just Eat also announced that it will be ending its operations in New Zealand due to it being a small market where the company was not one of the leading players. While it was a difficult decision, management expressed that it was necessary for the business to focus on larger markets where they can have more impact and resources to grow their business further.
In Australia, however, Just Eat is one of the larger players and will continue its operations there as it sees potential for growth and expansion opportunities.
Management revealed during an earnings call that they are actively exploring the potential sale of Grubhub despite overall declines in order volumes.
