The food delivery business, and tech companies leading the charge, were hot commodities at the peak of the Covid-19 pandemic as people stayed indoors and turned to apps to fill their bellies with pre-made meals. Now with that trend cooling off, those companies are feeling the chill.
In the latest development, big changes and drama continue to buffet Just Eat Takeaway, one of its big players in the global food delivery business. The company today said that its chairman, Adriaan Nühn, is leaving the company effective today as the company pushes to refocus itself; and that its COO, Jörg Gerbig, has also stepped away from his role on the management board because he is being investigated for inappropriate behavior — in the company’s words, “possible personal misconduct.”
“In April we confirmed that management is currently, together with its advisers, actively exploring the introduction of a strategic partnership and/or the sale of Grubhub, in whole or in part,” a spokesperson today told TechCrunch. “The process is ongoing and further announcements will be made as and when appropriate. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be.”
Just Eat Takeaway announced the two executive changes just ahead of its annual general meeting, where both had been scheduled to be reappointed to their roles.
While the two executive announcements are unrelated to each other, together they contribute to a picture of a company facing a wide set of challenges at the moment.
Partly because the business is under pressure, Just Eat Takeaway was clear to spell out that Gerbig’s investigation was “not related to financial or reporting obligations” but the result of a confidential complaint through the company’s Speak Up program where employees can report misconduct allegations.
Nühn’s departure is, however, directly related to the changing tides of the business and shareholder dissatisfaction with how it’s being managed.
“The Chairman’s decision to stand down recognises the concerns raised by our shareholders,” it said in a statement. “Their strong support is important to ensure the Company can focus on the challenges and opportunities ahead. We understand and share the concerns that have been raised by our shareholders. We are working hard to address them with proposed actions that management is confident will position Just Eat Takeaway.com for continued success going forward.”
The bigger picture for Just Eat Takeaway is that demand in the food delivery business has been wilting, and the rush of startups that raised hundreds of millions of dollars to build their businesses around it, went public on the back of early growth, and then danced when business boomed during the pandemic, are all now feeling the pain.
Gross bookings for delivery at Uber are still exceeding those of mobility, at $13.9 billion versus $10.7 billion respectively, but the growth of the segments tells a different story. Mobility’s bookings were up 58% over a year ago as more people get comfortable again with less social distancing; while delivery was up only 12%.
Now, who knows what the coming months will now bring for any of them in terms of consumer demand, whether they will follow through on their promise of making everything more efficient through tech, and, because they are all publicly listed, whether investors keep an appetite as they work through these things.
