Report: Uber Approaches Grubhub With Takeover Offer
UNITED STATES - Demand for delivery has skyrocketed as more consumers look to options that fit with current shelter-in-place orders. In order to keep up with this demand, it seems that Uber is looking into acquiring its rival, Grubhub.
According to people familiar with the matter, the two food delivery services are in talks about a deal and could potentially reach an agreement as soon as this month. Bloomberg reported that although the deliberations are still ongoing, the talks could still fall through.
In response to the news, Grubhub released a statement saying the following: “Consolidation could make sense in our industry, and like any responsible company, we are always looking at value-enhancing opportunities. That said, we remain confident in our current stratgy and our recent initiatives to support restaurants in this challenging environment.”
Uber also issued a statement, remarking that it “wouldn’t respond to speculative M&A premiums” and that it is “constantly looking at ways to provide more value to our customers, across all of the businesses we operate.”
As Uber continues to creep into the grocery sector with new programs like Uber Direct, will this potential acquisition give it the leg up over competitors seeking to gain the same market share? AndNowUKnow will continue to report how this reported deal will shake out and whether it will transform both the grocery and foodservice sectors.