Grubhub’s Campus Business Grows as Order Volumes Fall
College students aside, fewer Americans are ordering their meals from Grubhub.
The food delivery platform’s parent company, Dutch firm Just Eat Takeaway, reported earnings Wednesday (April 17) showing a 6% decline in order volume across its business, and a 12% drop in orders in North America, from 74.1 million in 2023 to 63.9 million this year.
Gross transaction value (GTV) was down 11% for North America, though up 11% in the U.K. and Ireland. The drop in Grubhub’s business followed a similar decline in the previous quarter, when order volumes dropped 13% year over year to 67 million and GTV was down 15%.
Management said Wednesday it is still exploring the sale of Grubhub.
Speaking during an earnings call, CEO Jitse Groen highlighted one bright spot for the company’s North American operations: Grubhub’s campus ordering offering, which saw orders increase by 28% year over year.
“The business now accounts for 18.18% of orders in the North America segment in the first quarter of 2024, and we also expect campus to continue to be a fast growing part of the business,” said Groen. “As a result, it is expected to become a more significant part of the North America segment over time.”
The growth in that segment of the business comes at a time when consumers are facing higher prices at restaurants, with recent government data showing that food consumed away from home — Fed-speak for restaurant meals — is now 4.2% more expensive than a year ago.
And while research by PYMNTS Intelligence has shown that a vast majority of consumers — across income and demographic levels — still spend on restaurants and bars, there is some evidence of pressure here.
Meanwhile, Just Eat says it will end its operations in New Zealand. During the call’s question-and-answer session, management was asked why the company was choosing to shut down in New Zealand and not its neighbor Australia.
Groen described the country as “a small market in which we were not one of the leading players,” while noting the closure is “of course, a painful decision for the local staff.”
“Australia is a bit of a different matter,” he added. “We’re actually quite large in Australia, one of the larger players in the country.”
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