Prairie-based online food delivery firm SkipTheDishes sold to U.K. company

WINNIPEG — SkipTheDishes, an online food delivery company that founded in Saskatoon and headquartered in Winnipeg, is being sold to a company in England.

The London-based Just Eat says in a news release that it’s buying SkipTheDishes for CAD$110 million, to be primarily funded from existing cash resources.

Just Eat says SkipTheDishes has a selection of more than 2,900 unique restaurants and 350,000 active customers, so the deal will help with Just Eat’s plan to be the market-leader in online food delivery in Canada.

SkipTheDishes operates in 14 Canadian cities, mostly in Western Canada, and six cities in the U.S. Midwest.

According to the news release, Canada’s growing online food delivery market is worth about $2.5 billion a year and SkipTheDishes is expected to generate revenue of $23.5 million this year.

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The deal is expected to be completed Thursday.

“This is a hugely exciting day for SkipTheDishes,” said CEO and co-founder Joshua Simair.

“By joining forces with Just Eat, we are bringing together two business models which will leave the combined business well-positioned to address the Canadian online food delivery market’s unique characteristics and unlock its considerable unrealized potential.”

Last December, the Manitoba government gave SkipTheDishes more than $5 million to create jobs in Winnipeg.

Earlier this year, the Saskatchewan government gave the company $3 million over three years as a training subsidy to create jobs in Saskatoon. SkipTheDishes was expected to grow its office Saskatoon office by up to 300 employees from its current 20.

The move was controversial because the Saskatchewan Party government and Premier Brad Wall have repeatedly said they don’t choose winners and losers in the economy.

But in November, it was revealed that the company didn’t meet conditions to hire employees and acquire space in Saskatchewan, so the first cheque was never cashed and the government cancelled it.

The Canadian Press

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