London-based digital food delivery and takeout marketplace Just Eat announced today it has acquired B2B catering marketplace City Pantry, also based in London, for an initial cash consideration of £16 million (~ $18 million USD).
According to a Just Eat press release, the initial cash consideration was paid using existing resources, and further cash consideration could be payable if “certain operational and financial criteria” are met over the next three years.
City Pantry’s digital marketplace connects chefs and restaurants to corporate offices to provide food delivery to employees. Its services include not just food for events or large team meetings but also a regular meal planning tool, where offices can order breakfast and lunch regularly and ahead of time. All orders are done online and delivered to offices at scheduled times, whether that’s on the same day or, in the case of big events, even months after the order has been placed.
City Pantry currently serves companies like Eventbrite, Amazon, WeWork, and Slack, among others. To date, the company had raised £5.1 million (~$6.4 million USD).
Just Eat is Old Guard when it comes to third-party restaurant food delivery services, having started in Denmark in 2001 and expanded its marketplace across Europe as well as Mexico, New Zealand, Canada, and Brazil.
The company of late has been on a buying spree, acquiring Flyt this past January and Practi in April. In both cases, technology was at the center of the deal. Practi’s software lets Just Eat incorporate a full management platform — front and back of house — into restaurants it works with who don’t already have such technology in place. For those that do, Flyt provides the tools to integrate existing systems with Just Eat’s.
The City Pantry acquisition will help Just Eat strengthen its presence in the corporate catering sector in both the UK and internationally.