With this announcement, JET is bowing to the demands of aspiring shareholders who have been pushing for group sales for some time. CEO Jitsche Krone wanted to capture the US market by acquisition, but the distribution service has been performing poorly since the acquisition. The relatively small company will lose to big players like DoorDash and Uber Eats in the US.
Grubhub CEO Matt Maloney resigned late last year, but that too has not changed the tide.
Commenting on its quarterly results, JET now writes that it has asked consultants to explore possible follow-up plans with Grubhub. In addition to a full sale, a partial sale and collaboration with a partner are also on the table. JET insists it is not yet clear when Grubhub will be sold.
Grubhub’s poor performance and shareholder criticism have been holding back JET’s share price lately. Since its acquisition in mid-June, the food supply company has lost nearly two-thirds of its stock market value. After today’s news, the company registered an additional 6.9 percent.
Disappointing stock market results are not limited to group acquisitions. JET has been using coronalactoons for a long time, resulting in people being locked up in their homes and ordering more food. Orders are falling because now in Europe and North America those locks seem to be a thing of the past.
However, Crohn believes the company has performed surprisingly well. The number of orders in the first quarter of 2022 was 1 percent lower than the previous year. At the time, however, it was about slightly more expensive orders. JET has lowered expectations for the so-called transaction value throughout 2022.
According to Groen, the priorities throughout the year are to ‘increase profits and strengthen our business’. JET is still losing money at the moment, but the quarterly report does not provide accurate figures. Crone hopes to achieve a positive outcome throughout 2022.
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