Prosus Secures Global Food Delivery Dominance with R79bn Just Eat Takeaway Acquisition

Prosus Secures Global Food Delivery Dominance with R79bn Just Eat Takeaway Acquisition

Tech giant’s bold move reshapes industry landscape, sparks investor frenzy

There is a seismic shift for the global food delivery dominance. Prosus NV, the Amsterdam-listed tech investment arm of South Africa’s Naspers, has announced its acquisition of Amsterdam-based Just Eat Takeaway.com (JET) in a landmark R79 billion (€4.1 billion) all-cash deal. The deal was finalised after weeks of closed-door negotiations. It positions Prosus as the undisputed leader in the hyper-competitive meal delivery arena. This marks its most aggressive push yet to dominate the $450 billion global market.

The acquisition values JET at a 54% premium to its pre-offer share price. It sent shockwaves through European and South African markets. Just Eat Takeaway shares surged 47% in early trading. Prosus investors reacted with cautious optimism. There are broader questions about consolidation in the pandemic boom-turned-bust sector.

Strategic Move Cements Global Food Delivery Ambitions

Prosus CEO Fabricio Blikkistaan wasted no time framing the deal as a transformational play. “This isn’t just about scale. It’s about creating a platform. The platform connects restaurants, drivers, and consumers in every major economy,” he told Forever Yena during an exclusive interview. “With Just Eat’s infrastructure in 25 countries, we are leveraging our existing iFood assets in Latin America. Together, we’re building the first truly global food delivery ecosystem.”

Prosus is buying at the trough… If they can integrate JET’s European base with their emerging markets strength, this is a masterstroke. If not, it’s a very expensive bet on yesterday’s trend.

The numbers underscore the logic:

• Market Reach: Joint operations span 45 countries, covering 80% of the world’s addressable food delivery market.
• Synergy Targets: €280 million in annual cost savings by 2027, primarily from shared tech infrastructure and reduced marketing spend.
• Revenue Boost: JET’s €5.1 billion 2024 gross revenue adds critical mass to Prosus’ €7.3 billion food delivery portfolio.

Yet industry analysts note the deal arrives amid cooling sector valuations. Once high-flying delivery stocks have tumbled 60% from 2022 peaks as inflation-weary consumers pull back. “Prosus is buying at the trough,” said Arlene van der Merwe, equity analyst at Cape Town-based Ubuntu Capital. “If they can integrate JET’s European base with their emerging markets strength, this is a masterstroke. If not, it’s a very expensive bet on yesterday’s trend.”

From Takealot to Takeaways: Naspers’ Endgame Emerges

The acquisition continues Naspers’ decades-long evolution from a newspaper publisher to a global tech conglomerate. The group made a legendary early investment in Tencent. Since then, it has methodically built Prosus into a $120 billion vehicle. This vehicle spans classifieds (OLX), fintech (PayU), and edtech (Skillsoft). Food delivery, yet, has become its centrepiece.

“Food is the ultimate recurring consumer need,” explained Blikkistaan. “Unlike ride-hailing or e-commerce, people order meals three times a week. Win that habit, and you own a piece of their daily life.”

The JET deal follows Prosus’ failed 2022 bid for Deliveroo and its gradual consolidation of Brazil’s iFood. Crucially, it gives Prosus control of JET’s Grubhub—a struggling but strategically vital U.S. asset. “Grubhub is the skeleton key to North America,” noted Bernstein analyst James Friedman. “With Uber Eats and DoorDash battling there, Prosus now has a seat at the table.”

Market Reacts to Delivery Powerhouse Shift

Investor reactions highlighted both excitement and scepticism:

• JET Shareholders: The €108 per share offer—a 54% premium to the February 23 closing—was greeted with relief. Activist investor Cat Rock Capital had demanded a sale since 2023. They called it “a win for stakeholders exhausted by mismanagement.”
• Prosus Investors: Shares dipped 3.2% on dilution fears, though long-term backers praised the strategic fit. “This finally gives Prosus the European scale it lacked,” said Ninety One portfolio manager Thabo Mbeki.
• Competitors: Uber Eats and Deliveroo shares fell 5-7% on anticipated price wars.

The deal also carries geopolitical undertones. By folding JET into its empire, Prosus gains control of critical delivery algorithms. It also gains control of urban logistics networks across NATO countries. Regulators have not overlooked this fact. The European Commission has pledged a “thorough” antitrust review, though insiders believe approval is likely with minor divestments.

Cape to Canal: A Dutch Connection With SA Roots

Ironically, the deal unites two Amsterdam-headquartered firms with contrasting lineages. JET, formed via the 2020 merger of Just Eat and Takeaway.com, embodies European startup culture. Prosus, while Dutch-domiciled, remains tethered to its South African heritage through Naspers’ 49% stake.

“This isn’t just another corporate takeover,” asserted Naspers chair Koos Bekker. “It’s a meeting of two companies that understand emerging markets. Just Eat’s tech paired with our experience in Brazil and India? That’s how you build for the next billion users.”

Labour advocates, yet, warn of turbulence ahead. JET’s 15,000 employees face uncertainty as Prosus targets €280 million in cuts. “Workers built this company through the pandemic,” said UNI Global Union’s Christy Hoffman. “They can’t be discarded for spreadsheet savings.”

This isn’t just about scale. It’s about creating a platform. The platform connects restaurants, drivers, and consumers in every major economy.

The Road Ahead: Integration Challenges and Opportunities

For Prosus, the hard work begins now. Key challenges include:

1. Tech Stack Merging: Integrating JET’s European systems with iFood’s Brazil-focused platform
2. Brand Strategy: Deciding whether to keep JET’s local brands (SkipTheDishes, Grubhub) or unify under a single banner
3. Regulatory Hurdles: Navigating antitrust scrutiny in the UK, EU, and U.S.

Yet the opportunities are vast. Prosus plans to leverage Naspers’ China knowledge to introduce live commerce features—think TikTok-style videos of chefs preparing meals. Early trials in São Paulo saw order values jump 22%.

“Imagine watching a pasta dish being made in Rome, then tapping to order it in Rotterdam,” mused Blikkistaan. “That’s the future we’re building.”

Global Food Delivery Dominance Within Reach

As the ink dries on this R79 billion gamble, one truth emerges. Prosus has positioned itself as the only player capable of challenging Uber Eats and Meituan. This challenge is in the race for global food delivery dominance. With 450 million active users, there are 2.1 million restaurant partners. They control last-mile logistics in megacities from Mexico City to Berlin. The stage is set for a culinary tech cold war.

For South Africans, the deal offers bragging rights. “We’re a tech lighthouse from the Global South,” Bekker declared. “This proves innovation isn’t confined to Silicon Valley.”

Whether that innovation translates to profits remains to be seen. But as midnight snacks turn into corporate strategy, one thing is certain: the world’s dinner tables just became a battleground.

FAQs About Prosus’ Global Food Delivery Dominance