Uber Wants to Buy Grubhub
The food delivery market has seen huge increase in demand in recent months. But now we could see one of the major players disappear. Uber has reportedly made an offer to acquire Grubhub according to a report from Bloomberg News.
“The companies are in talks about a deal and could reach an agreement as soon as this month” the report says. Grubhub is valued at $5.7 billion dollars after its shares surged more than 30% when takeover talks were revealed.
The Uber ridesharing business has seen a big hit during the coronavirus pandemic. So the company has relied on Uber Eats to make up some of the losses. Acquiring Gurbhub would also align with Uber Eats’ strategy to be one of the top two players in any market. Uber Eats quit seven markets last week because it couldn’t see a path to achieving that.
Back in October 2019, Uber announced an agreement to acquire Cornershop, a grocery delivery startup that began life serving the Latin American market. The Grubhub deal would be a big next step.
Grubhub held the largest share of the U.S. food delivery market in 2018 accounting for 34%. Uber Eats was the second highest with 24%. In 2019 the gap shrank to 30% and 27% respectively and this year Grubhub still claims the number spot with 28% vs 27% for Uber Eats. DoorDash comes in third.
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