Grubhub founder Matt Maloney is leaving the food-delivery giant just four months after it was acquired by a European conglomerate.
Amsterdam-based Just Eat Takeaway bought Grubhub, which also owns Seamless, in June for $7.3 billion, naming a new chief executive — former president and chief financial officer Adam DeWitt — to succeed Maloney who was bumped up to the company’s board.
Maloney will step down in December to “pursue other opportunities,” the company said on Friday.
“Great entrepreneurs like Matt start businesses that touch the lives of millions of people,” Just Eat Takeaway’s CEO Jitse Groen said in a statement. “He has built a magnificent company and helped create hundreds of thousands of jobs across the US. We are sorry to see him leave the Company and wish him the best in his future endeavours.”
Maloney, 44, who co-founded the company in 2004 in Chicago, had most recently grappled with the most tumultuous period in Grubhub’s history, as cities and states impose regulations aimed at curbing the fees delivery services charge to restaurants.
These efforts began in New York City before the pandemic in 2019 — led by City Council member Mark Gjonaj (D-Bronx) — and accelerated as the restaurant industry was decimated by COVID-19 and legislators took up their cause.
Over the past couple of years, Grubhub has steadily lost market share to rivals, Doordash and Uber Eats, across the county and in its core market, the Big Apple.
By one measure, Grubhub controls 34 percent of New York City as of July, down from 72 percent just two years ago, according to data analytics firm, Bloomberg Second Measure. Doordash has edged into the number one position with 36 percent market share, according to the data company.
Grubhub has also lost market share across the country, accounting for 17 percent of US food delivery sales in May compared to 21 percent for Uber Eats and 57 percent for Doordash, according to Second Measure.
Two years ago The Post exclusively broke the news about GrubHub erroneously charging restaurants fees for as much as $11 a pop for telephone calls that never resulted in a food order — and resulted in City Council hearings and legislation making the practice illegal.
The company’s shares were getting hammered, plummeting by 43 percent after a poor earnings report on Oct. 29, 2019, in which GrubHub drastically slashed its financial outlook, blaming fierce competition at the time.
At the time, Maloney wrote a 10-page letter to investors and pointed a finger at what he called “promiscuous” diners who were getting lured to other services like UberEats and Doordash that have been dangling discounts, he said.
“It’s very hard to trick a consumer to pay more than they want to pay,” Maloney said on an earnings call, adding that consumers “are incredibly price sensitive, they understand what they are paying.”
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