Grubhub announced CEO Adam DeWitt is stepping down and leaving the company after 11 years.
DeWitt will be replaced by Howard Migdal, who will serve as CEO of Grubhub and executive vice president of North America for parent company Just Eat Takeaway.com. Migdal currently works as CEO of SkipTheDishes, a Canadian subsidiary.
DeWitt will remain with Grubhub until May in an advisory role. The industry veteran joined the company in 2011 as CFO before adding the role of president in January 2018. DeWitt ascended to CEO in June 2021— replacing founder Matt Maloney—in conjunction with Just Eat’s $7.3 billion acquisition of Grubhub.
During his tenure, Grubhub grew from $20 million to more than $2 billion in annual revenue, with a network of 365,000-plus restaurants, 400,000 delivery partners, and 4,000-plus cities. DeWitt played a significant role in Grubhub’s IPO in 2014 and the transaction with Just Eat.
“It’s hard to leave Grubhub, but it’s the right time for me after 11 years,” DeWitt said in a statement. “I am incredibly proud of what this team has accomplished and will forever value the relationships I’ve forged here. Grubhub is in great hands with Howard and the Grubhub leadership team, and I’m excited to watch the company continue to thrive.”
Migdal entered Just Eat in October 2016 as country manager of Canada. He then advanced through the ranks at SkipTheDishes, serving as managing director, COO, and finally CEO in November. Migdal has more than 16 years of experience in food delivery and co-founded GrubCanada, Canada’s first national food delivery platform.
Steve Puchala, senior vice president, growth and restaurant success, was appointed interim CEO for SkipTheDishes and will report to Migdal.
“I am honored to take on the role leading our North America business and becoming the CEO of Grubhub,” Migdal said in a statement. “Grubhub is an incredible brand and has tremendous scale through its restaurant and delivery networks. I am excited to build on the foundation built by Adam and the team.”
The move comes nearly a year after Just Eat announced it was exploring a full or partial sale of Grubhub. A couple of months later, it was reported by the U.K.’s Sunday Times that Just Eat cut its asking price to $1.26 billion because it couldn’t find buyers.
In a new release about its 2022 financial results, Just Eat said, “Management, together with its advisers, continues to actively explore the partial or full sale of Grubhub. There can be no certainty that any such strategic actions will be agreed or what the timing of such agreements will be. Further announcements will be made as and when appropriate.”
Just Eat’s North America segment, which includes Grubhub, completed 327 million orders in 2022, down from 374 million in 2021. Adjusted EBITDA was roughly $68.9 million, an improvement from negative $29.7 million in the year-ago period. The year-on-year improvement was due to increased efficiency of the delivery network, pricing strategy, strategic marketing efforts, and the reduced impact of fee caps.