Wonder – a food hall company that is creating a super app for meal time – announced that it is buying Grubhub. Grubhub is a leading food ordering and delivery company with over 375,000 merchants and 200,000 delivery partners across the United States. Integrating Grubhub into Wonder is the next step in Wonder’s goal of making great food more accessible, bringing together the convenience, speed, and selection of first-party and third-party restaurants, groceries, and meal kits in a single app order. Plus, all Wonder locations will be available on Grubhub for third-party delivery.
Wonder will be buying Grubhub from Just Eat Takeaway.com for an enterprise value of $650 million, including $500 million of senior notes and $150 million cash. The completion is expected during Q1 2025, subject to customary closing conditions including regulatory approvals. Wonder has also revealed an additional $250 million in capital raised exclusively from new investors. Alex Rodriguez and Marc Lore also agreed to buy the NBA’s Minnesota Timberwolves franchise along with the WNBA’s Minnesota Lynx back in 2021, which is still in progress.
Wonder was founded by serial entrepreneur Marc Lore. Lore worked as the head of Walmart’s e-commerce unit after selling his previous company Jet.com to the retail giant for $3.3 billion in 2016. Before Jet, Lore was co-founder and CEO of Quidsi (parent company of several websites including Diapers.com), which was acquired by Amazon for $545 million.
Wonder has a Multi-Restaurant Ordering business, a first in the industry. Customers can order from upwards of 30 restaurants in a single order, with each item being made-to-order in a sequenced fashion so that they finish simultaneously and can be delivered to the customer together.
And Wonder features exclusive offerings from the world’s best chefs, such as Bobby Flay, Marcus Samuelsson, and José Andrés, and the country’s best restaurants, like Maydan, Tejas Barbecue, Di Fara Pizza, and Fred’s Meat and Bread. Wonder currently has 28 locations in the Northeastern U.S., with seven additional locations slated to open by the end of the year. Utilizing its proprietary technology, Wonder can differentiate itself from every other restaurant or food delivery concept by offering exceptionally high-quality food with order-to-delivery times below 30 minutes.
About a year ago, Wonder acquired Blue Apron for about $103 million. Blue Apron is a rapidly growing meal kit delivery company.
Grubhub has connected merchants with nearby customers looking for takeout and delivery for 20 years. Its logistics network covers the vast majority of the U.S. population with on-demand delivery from independent restaurants, leading national restaurant brands, and convenience, grocery, pet, and office supply retailers. The company’s loyalty program, Grubhub+, offers members $0 delivery fees, lower service fees, and 5% back on pickup orders. Beyond its consumer delivery marketplace, Grubhub has a Campus Dining business that powers online ordering at more than 360 universities and a Corporate Accounts business that provides flexible meal perks platforms for more than 10,000 companies.
Jefferies worked as Wonder’s exclusive financial advisor on the transaction.
KEY QUOTES:
“Wonder’s acquisition of Grubhub continues our mission to make great food more accessible. As we enhance our customer experience with selection, speed, and variety, we’re excited to soon offer a curated selection of Grubhub’s restaurant partners directly in the Wonder app, alongside our owned and operated restaurants and meal kits. Bringing Wonder and Grubhub together is the next step in our vision to create the super app for meal time, re-envisioning the future of food delivery.”
– Marc Lore, Founder and CEO of Wonder
“I am incredibly excited for Grubhub to join forces with Wonder and bring more value to our diners, merchants and delivery partners. Since our earliest days, Grubhub has helped restaurants open their doors to new customers, while introducing diners to new cuisines. That’s why I’m confident that Grubhub will complement Wonder’s mission to make great food more accessible and that together we will create remarkable dining experiences for more customers across the country.”
– Howard Migdal, Grubhub CEO
