Tom Forte, an analyst with Davidson, said the pandemic will likely expand the size of the food delivery market, perhaps permanently. The Wall Street Journal is also reporting the approach, citing sources. But, gross bookings at Uber Eats jumped 52 to 4.68 billion. Grubhub's first-quarter revenue rose 12% to $363 million, but it reported a net loss of $33.4 million. Twitter user deltaone tweeted that Uber approached Grubhub with a takeover offer, leading to a jump in the stock. Gross bookings with Ubers ride-sharing unit dropped 5 to 10.87 billion from the year-ago period. Uber said last week that revenue in its Uber Eats meal delivery business grew 53% to $819 million in the first quarter, but it reported a $313 million adjusted loss for the division. According to Second Measure, DoorDash occupied 44 percent of the delivery market in May, followed by 23 percent for Grubhub, 22 percent for Uber Eats. The companies have also waived fees for struggling restaurants during the pandemic.
“Clearly this would be an aggressive move by Uber to take out a major competitor on the Uber Eats front and further consolidate its market share position, especially as the COVID-19 pandemic continues to shift more of a focus to deliveries versus ride-sharing in the near term,” Ives wrote in a note to investors.įood delivery companies have had difficulty turning a profit despite rising demand for their service, partly because fierce competition has forced them to offer deals and keep prices low. Just Eat Takeaway's (NASDAQ:GRUB) 7.3 billion takeover of Grubhub, which was announced a year ago, finally closed on June 15.Grubhub's investors received 0.671 shares of the new American. is said to have been rejected as merger talks continued over the weekend.The Wall Street Journal reported that talks between Grubhub Chief Executive Officer Matt Maloney and Uber CEO Dara Khosrowshahi on Sunday indicated that Uber’s latest offer of 1.9 of its shares for each GrubHub share is too low. DoorDash, their chief competitor, controls around 35% of the market. Uber Technologies Inc.’s latest stock offer for rival food delivery company GrubHub Inc. food delivery market, according to Dan Ives, an analyst with Wedbush Securities. Uber and Grubhub declined to comment on the report when contacted by The Associated Press.Ĭombined, Uber Eats and Grubhub would control 55% of the U.S.