Uber Might Swallow GrubHub

Merger would create food-delivery market leader
By Rob Quinn,  Newser Staff
Posted May 12, 2020 3:36 PM CDT

(Newser) – 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. (Read more Uber stories.)

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