Hungry for a deal

12 May 2020 By Jennifer Saba Follow @jennifersaba

Matt Maloney bemoaned excessive competition among food-delivery startups. The lockdown has helped, but it’s still cut-throat. Now the $55 bln ride-hailing giant may buy Grubhub. That’s one way to solve Maloney’s problem, provided price and antitrust thinking go his way.

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Ride-hailing company Uber Technologies is seeking to acquire food-delivery service Grubhub, according to the Wall Street Journal on May 12.

Grubhub proposed a deal in which Grubhub shareholders would receive 2.15 Uber shares for each Grubhub share, the Journal said.

That would represent a 45% premium based on the closing prices of both Uber and Grubhub shares on May 11. Uber Eats competes with Grubhub.

Grubhub’s market value at the close of trading on May 11 was $4.3 billion while Uber’s was $55 billion.

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