Grubhub’s Decline in Order Volume: Is the Food Delivery Market on the Brink?
The food delivery platform, Grubhub, has seen a decline in order volume across its business, with a 6% decrease in orders reported by Just Eat Takeaway. This downward trend is not limited to the U.S., as North America saw a 12% drop in orders from 74.1 million in 2023 to 63.9 million in the current year. Despite this decline, Grubhub’s campus ordering offering experienced a 28% increase in orders year over year and now accounts for 18.18% of orders in the North America segment.
Just Eat Takeaway also mentioned during an earnings call that they are still considering the sale of Grubhub. However, there was a positive note regarding the growth of the campus ordering segment, which has been increasing in importance for consumers who are facing higher prices at restaurants with food consumed away from home being 4.2% more expensive than a year ago.
Despite these challenges, Just Eat has announced the end of its operations in New Zealand due to it being a small market where the company was not a leading player. This decision will impact the local staff, but it was described as necessary for Just Eat to continue focusing on its operations in Australia where it remains significant player.
