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Wonder is acquiring Grubhub

(about.grubhub.com)
146 points endtwist | 6 comments | 13 Nov 24 19:12 UTC | HN request time: 0s | source | bottom
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jaymzcampbell ◴[13 Nov 24 19:21 UTC] No.42129011[source]▶
Mentions the $650mln they'll pay Just Eat for it, neglects the fact Just Eat paid $7.3bln. Quite the write down. And in just 4 years.
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popcalc ◴[13 Nov 24 19:24 UTC] No.42129050[source]▶
Where did all the money go?
replies(9): >>42129084 #>>42129086 #>>42129088 #>>42129194 #>>42129289 #>>42129662 #>>42130301 #>>42131997 #>>42132694 #
rpcope1 ◴[13 Nov 24 19:29 UTC] No.42129088[source]▶
Well, when you're in the business of selling a dollar for eighty cents, all the money probably got flushed down the toilet.
replies(3): >>42129098 #>>42129301 #>>42129451 #
1. 0x0000000 ◴[13 Nov 24 20:11 UTC] No.42129451[source]▶
How were they selling a dollar for 80 cents? The actual food is more expensive on grubhub than ordering through the restaurant, and then there are multiple fees on top of that.
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2. bena ◴[13 Nov 24 20:27 UTC] No.42129611[source]▶
But there is the cost of hosting, developers, drivers, etc.

And that's all cost that is not borne by the restaurant.

And there is a limit to how much people would pay to get something delivered. So they're probably pricing the delivery, etc less than they've actually paid.

replies(1): >>42130125 #
3. makestuff ◴[13 Nov 24 21:16 UTC] No.42130074[source]▶
Tons of marketing/advertising. The free GrubHub+ subscription through prime probably burned through a lot of cash. I doubt Amazon was paying them very much (if anything) to Grubhub. Then you have all of the corporate staff (around 3k based on google search) who are highly paid.
replies(1): >>42130110 #
4. SoftTalker ◴[13 Nov 24 21:19 UTC] No.42130110[source]▶
And the competition from UberEats and Doordash, who also are constantly promoting discounts, free orders, etc. so there's almost no way they can recoup actual costs let alone turn a profit.
5. ghaff ◴[13 Nov 24 21:21 UTC] No.42130125[source]▶
We've seen this before and we'll see it again. There are lots of people who will pay for things below cost. Sometimes that cost comes down but a lot of the time it does not especially in relatively affluent countries. I don't have a personal driver or chef like I might have in some places. I do have some other house/yard services but very occasionally and I consider them luxuries.
6. robertlagrant ◴[14 Nov 24 11:56 UTC] No.42135352[source]▶
If you're in zero interest rate policy, money looks like it's worth almost nothing.