The Strategist

Uber to buy Grubhub food delivery service

05/13/2020 - 03:39

Taxi service Uber Technologies Inc., which also owns Uber Eats food delivery business, could buy Grubhub, the Wall Street Journal wrote, citing sources.

torbakhopper via flickr
torbakhopper via flickr
"Uber Technologies Inc. intends to acquire Grubhub Inc. Earlier this year, Uber asked Grubhub for a purchase, and companies continue to discuss a possible merger," sources familiar with the situation told the publication.

Grubhub later said it did not comment on the rumors, while noting that "a business combination could be justified in our segment."

Amid the news, Grubhub shares jumped 34.5%, the company's capitalization rose from $ 4.3 billion to $ 5.8 billion. Uber securities are growing at a price of 5%, the company's value is about $57.5 billion.

Uber is a taxi service. The company was established in 2009, its headquarters is located in San Francisco. Today, Uber services are available in more than 100 cities around the world. The company receives a commission from taxi drivers in the amount of 20% of each call.

Grubhub is a service for the delivery of prepared food from restaurants and cafes, founded in 2004. It works in the USA and London. The company owns the brands Grubhub, Seamless, LevelUp, AllMenus and MenuPages.