Just Eat Takeaway (JET) has written own the value of its US food delivery subsidiary Grubhub by €3 billion, cutting its value almost in half just 12 months after purchasing the app for $7.3 billion.
The valuation reduction comes as Just Eat is trying to sell the delivery group as a result of the tumbling of Grubhub’s valuation.
JET said that the write down came due to the “the reduction in sector valuation comparables” combined with the impact of rising interest rates and market volatility.
Leading shareholder Cat Rock Capital has long called for JET to offload Grubhub as its market value declined.
This prompted JET to announce in April that it was “actively exploring the introduction of a strategic partner into and/or the partial or full sale of Grubhub” as a way to realise value from its assets.
Just Eat’s share price has plummeted 80% since the start of 2021.
The grocery and food delivery sector has watched growth in business slow down as pandemic restrictions were lifted.
JET rival Deliveroo cut its annual sales forecast last month, citing a reduced demand for takeaways as the cost-of-living crisis continues to bite consumers’ wallets.
Amazon and Just Eat inked a deal last month to offer Prime users in the US free, one-year Grubhub+ membership as part of a bid to stand out against market rival DoorDash.