Uber Looking To Eat Up GrubHub: Reports
Uber Technologies (NYSE: UBER) is looking to acquire GrubHub (NYSE: GRUB) uniting the two meal delivery services, according to multiple reports.
What To Know
The coronavirus pandemic has seen a rise in demand for meal delivery services. Over the years, the fast-food delivery industry has become very competitive, with rivals that also include DoorDash and Postmates.
"The companies are in talks about a deal and could reach an agreement as soon as this month," according to Bloomberg.
In January, GrubHub said there was no process in place to sell the company after reports emerged the company had tapped financial advisers to assist with a review of potential moves that could include a sale of the company or an acquisition.
Why It's Important
“Uber Eats, once engaged in capital destruction, finds itself faced with unforeseen demand for new service lines of grocery and convenience,” Wells Fargo analysts said in note following Uber's recent earnings. “We think that, taken together, these actions reduce downside risk in the stock and set up a leaner high growth company one to two years down the road.”
GrubHub's stock traded higher by 28.42% to $60.09 per share at time of publication on Tuesday. The stock has a 52-week high of $80.25 and a 52-week low of $29.35.
Uber's stock traded higher by 5.61% to $33.42 per share. The stock has a 52-week high of $47.08 and a 52-week low of $13.71.
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