Meanwhile, voicing a cautiously optimistic tone over the deal, an Uber spokesman was quoted saying following reveal of Tuesday’s (May 12th) media report that the company did not respond to speculative M&A, but such consolidation could make sense in the industry.Īs of March 31st 2020, DoorDash had 42 per cent market share, while Uber Eats and GrubHub had 20 per cent and 28 per cent respectively, suggesting a merger could substantially aid Uber at its uphill battle in US meal delivery services industry, which had witnessed a growth of 24 per cent over the first quarter of the year on an annualized basis. An Uber spokesman said the company does not respond to speculative M&A. had closed down the day 5.05 per cent to $32.37 per share after rising as much as 11.50 per cent in US mid-day trading hours. Shares of Grubhub closed up 13.6 at 60.39, while Uber’s gained rose 2.4 to 32.40.
A combined operation would overtake number one player DoorDash, which had 42 percent.Uber Technologies Inc., the San Francisco, CA-based American multinational ride-sharing pioneer offering a swathe of services ranging from peer-to-peer ridesharing to electric bikes and scooters to online food delivery, had been in an advanced stage talk to takeover an Illinois, Chicago-based online food delivery company GrubHub in an all-stock deal, a person directly briefed over the subject-matter had unveiled on Tuesday, the 12th of May 2020, on condition of anonymity as the source was not authorized to speak over the issue on public.Ĭoncomitantly, followed by the reveal of Uber Technologies Inc.’s latest move to purchase GrubHub, several analysts were quoted saying that the deal in effect would narrow down the CA-based ride-sharing pioneer’s distance with the market leader DoorDash, while the NYSE-listed shares’ prices of GrubHub jumped as much as 28.96 per cent to $60.39 per share on Tuesday’s (May 12th) Wall St. Uber has been seeing strong growth in its food delivery operation Uber Eats, partly offsetting the sharp decline in ride-hailing during the global pandemic.Īccording to the research firm Second Measure, Uber Eats accounted for 20 percent of US meal delivery sales in March and Grubhub had 28 percent. Neither company commented on the potential tie-up but Grubhub said in a statement it is "squarely focused on delivering shareholder value" and added that "like any responsible company, we are always looking at value-enhancing opportunities."
Grubhub shares, which rose sharply on the reports of a tie-up earlier this week, slipped 3.7 percent on Wednesday. The $6 billion share offer was first reported by The Wall Street Journal. Uber recently approached Grubhub with a potential all-stock takeover bid, said two of the people, who spoke on the condition of anonymity because the details were confidential.
The two firms were not in agreement on a deal that would unite two of the three largest US players in the food delivery segment, according to the source who declined to be identified. NEW YORK - Uber is offering $6 billion in stock in its takeover bid for meal delivery group Grubhub, a source familiar with the talks said Wednesday. Uber is bidding for rival meal delivery service Grubhub in a deal that would bolster its Uber Eats operations and create the largest player in the segment in the United States
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