Uber Might Swallow GrubHub

Merger would create food-delivery market leader
By Rob Quinn,  Newser Staff
Posted May 12, 2020 3:36 PM CDT
Uber Might Buy GrubHub
A restaurant advertises Uber Eats in the Coconut Grove neighborhood in Miami.   (AP Photo/Lynne Sladky, File)

Uber might be preparing to swallow GrubHub in a deal that would create a clear market leader in the burgeoning food-delivery business. Sources tell the Wall Street Journal that Uber, which is focusing on its Uber Eats unit as ride-sharing slumps, approached GrubHub with a takeover offer earlier this year and is currently considering a deal that would give GrubHub sharehoders 2.15 Uber shares for every GrubHub share. With food-delivery companies losing massive amounts of money amid cut-throat competition and steep discounting, Tae Kim at Bloomberg believes it makes sense for two of the industry's four biggest players to combine. "Given the importance of food delivery in a pandemic world, a sustainable industry structure could be good news for everyone" he writes. GrubHub's shares surged more than 30% Tuesday. (More Uber stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.