The era of expensive food is coming to an end.

You must admire Just Eat Takeaway. The food delivery service was so engrossed in feeding people that it got confused and nearly ate itself.

Blame the boss Jitse Groen and his insatiable appetite. The Dutchman really gorged himself during the lockdown, gobbling up £6bn of Britain’s Just Eat as a first course before gobbling up £5.8bn of U.S. rival Grubhub a few months later.

But just a year after the Grubhub merger bypassed regulators, the deal is being canceled amid omnipotent shareholder backlash. Even last week’s announcement that Grubhub was rushing to find buyers is not enough to reassure some.

Kat Rock, a 7% stake activist, is calling for Just Eat’s chairman and chief financial officer to be fired, arguing that investors were misled about the company’s financial outlook when the Grubhub takeover was put to a vote. Cat Rock was the key driving force behind Groen’s feeding frenzy, so his sudden hostility is the real twist.

However, this is not just a case of old-fashioned indigestion caused by an executive who has bigger eyes than his belly. Rather, it could be the moment when the era of overpriced takeaway food came to an abrupt end. In a desperately crowded realm, the food delivery app industry is one of the most publicized to ever emerge in Silicon Valley. The economy is really ludicrous – more bookings means more passengers and more costs – and many of us found the service terrible.

Not surprisingly, big companies quickly cashed in on the coronavirus-inspired boom when Deliveroo slipped into the market at a float price that looked like it was concocted over a drunken lunch, around the same time Groen was filling up. its an all you can eat buffet.

However, it was always destined to be a short-lived phenomenon. Even as orders peaked, profits were still elusive.

Now the world is rediscovering its love of eating out, those same cold overpriced burgers and pizzas that lost their toppings in transit but survived us during lockdown no longer look as appetizing, making the economy even more challenging. This is an industry where everyone is obviously wondering where the next food comes from. Valuations across the sector fell, causing early investors to suffer huge losses. After a brief November rally, Deliveroo’s share price fell from 390p to 107p, down 72p.

In an attempt to prove that a model is more than just delivering a shriveled kebab to a student apartment in King’s Cross after the last orders, new sources of income are desperately sought.

Deliveroo has agreed an unlikely collaboration to deliver products to Waitrose in super-fast time. There seems to be a market for younger middle-class shoppers who are happy to part with a £2.50 delivery charge for the privilege of having an overpriced cooked meal and a bottle of wine delivered to their door so they don’t have to walk. . local supermarket.

Cat Rock accuses Just Eat’s management of destroying €16 billion in equity value through its acquisitions. After peaking at €17.4bn (£14.7bn) in early 2021, the company’s market value has fallen by almost three-quarters to €5.5bn over the past 12 months following a series of profit cuts.

That’s less than forked on Grubhub, a pretty remarkable cost-breaking exercise.

Cat Rock says there has been a “complete loss of confidence” in the “capital allocation and financial management” of the management and supervisory board.

The Foundation may be right. Just Eat acknowledges that it “shares investors’ disappointment over recent share price performance.” Less reassuring is the assertion that “the actions we are taking, including with Grubhub, are aimed at creating significant shareholder value.” The likelihood of the company recovering its £5.8bn cost seems fantastic at best.

It’s much more likely that the food delivery boom was largely a London fad that has outlived its day. Few outside the metropolitan metropolis will mourn his disappearance.

Musk paid $44 billion for a political argument

It’s never boring with Elon Musk, but how many of the world’s most powerful entrepreneurs are smoking weed on live TV or accusing brave cavers of pedophilia while single-handedly trying to reinvent the auto industry and colonize Mars? ?

Despite a $230 billion fortune that makes him the richest person on this planet, Musk’s antics often resemble someone who is either bored or just enjoys turning people on, but whatever the motivation, it’s all quite a distraction from the day-to-day work of a Tesla executive. .

Take his Twitter application, which was accepted last night after initial resistance from its board.

Few would argue that a social media platform doesn’t need new ideas. However, it’s unclear how much Musk’s promise to promote what he calls free speech will help. Many experts believe that one of the main problems with Twitter is that it is infested with bots and trolls. Musk’s crusade runs the risk of allowing them to multiply, further hurting the Twitter brand. He says he “doesn’t care about the economy,” which is probably a good thing because his $44 billion takeover risks becoming the most expensive political offer ever made.