It’s not a huge number, but if you work for Grubhub, you might want to keep reading. The food delivery giant, which has key markets worldwide, announced last week that it is laying off 500 employees.
Howard Migdal, Grubhub’s chief executive officer, announced last Friday that the platform will cut approximately 500 workers to maintain its efficiency.
As of 2024, a landmark year for the world of ridesharing and food delivery, it had over 2,200 full-time employees, perhaps even separate from the drivers, of course.
Migdal said the job cuts “span all teams.”
“Looking ahead, I am confident that, together with Wonder, we are in a strong position to disrupt the restaurant industry and redefine how people think about food delivery,” the Grubhub CEO stated. “While today is a difficult day, I have no doubt in our future and what we will accomplish together.”
The reason: Wonder’s takeover.
Last month, food hall Wonder completed its acquisition of Grubhub, which started last year. Wonder is also a food delivery startup managed by Walmart.
This food delivery service offers various cuisines from the best chefs and restaurants, from small-time eateries to award-winning diners. You can order food for delivery, pickup, or dine-in at their locations.
Founded by Marc Lore, the former president and CEO of Walmart, Wonder’s multi-restaurant ordering system allows customers to order from its catalog of 30 restaurant concepts. They may order from all those at once. It sounds too good to be true, but it’s possible. Each item is prepared in a sequenced fashion, so they finish off altogether, delivering them to guests at one time.
Before Wonder’s takeover, Grubhub was owned and managed by Just Eat Takeaway, the most sizable meal delivery firm in Europe. It sold its unit in the United States for $650 million, hoping it could de-burden its business of loads, just like taking away excess baggage.
After encountering slowed-down growth and high taxes, the company listed in Amsterdam sold Grubhub at a steep loss compared to the billions it paid a few years prior.
But that doesn’t mean Grubhub is going in a grim direction. Last month, Grubhub tied up with Avride, as also reported by the Ridesharing Forum team, to deploy its robots for deliveries in college campuses around the United States to address shortages in labor and reduce dependence on cars.
Right now, over 31.5 million customers are patronizing Grubhub. Why not? The app makes it easier for you to order food wherever you are. Stuck at home? Order food. Want to order for you and your office friends? Order a group meal. Abroad, and Grab isn’t available? Use Grubhub.
It works very simple. Type in your address or location where you want the order delivered, and just like other platforms of this kind, Grubhub shows results of restaurants that deliver to your area, as well as nearby pickup restaurants when you need to. Or, you can search by food or restaurant.
The layoff covers only 20 percent of Grubhub’s total workforce. Nothing to be worried about.