Uber Said to Offer $6 Billion for Meal Delivery Rival Grubhub

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 sources.

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By Agence France-Presse | Updated: 14 May 2020 15:14 IST
Highlights
  • The $6 billion share offer was first reported by The Wall Street Journal
  • Grubhub shares slipped 3.7 percent on Wednesday
  • Uber is seeing a strong growth in its food delivery operation Uber Eats

Uber and GrubHub are two of the three largest food delivery startups in US

Uber is offering $6 billion (roughly Rs. 45,260 crores) in stock in its takeover bid for meal delivery group Grubhub, a source familiar with the talks said Wednesday.

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.

The $6 billion (roughly Rs. 45,260 crores) share offer was first reported by The Wall Street Journal.

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Grubhub shares, which rose sharply on the reports of a tie-up earlier this week, slipped 3.7 percent on Wednesday.

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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."

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.

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According to the research firm Second Measure, Uber Eats accounted for 20 percent of US meal delivery sales in March and Grubhub had 28 percent. A combined operation would overtake number one player DoorDash, which had 42 percent.


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Further reading: Uber, GrubHub, DoorDash, Food Delivery
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