Just Eat Plc should merge with a rival online meal-delivery company because the board has shown that it can’t find a suitable chief executive officer, according to Cat Rock Capital Management LP, which owns about 2 percent of Just Eat.
The Greenwich, Connecticut-based investment firm sent an open letter to Just Eat’s board of directors saying it made a mistake in appointing Peter Plumb as CEO in 2017. Just Eat should use global consolidation to its advantage and a merger would deliver “real value,” according to Cat Rock.
…Consolidation has been heating up in the food delivery sector. Takeaway.com NV agreed to acquire the German businesses of Delivery Hero SE for approximately 930 million euros ($1 billion) in December, while Uber Technologies Inc.’s bid for Roofoods Ltd.’s Deliveroo stalled over a disagreement on valuation, the Financial Times reported in November.
Takeaway.com and Delivery Hero have market values of about 3 billion euros and 6.5 billion euros respectively. Other industry players include GrubHub Inc., Meituan Dianping, DoorDash Inc. and Postmates Inc.