Californian ride-hailing pioneer Uber approaches GrubHub takeover, shares snowball

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Californian ride-hailing pioneer Uber approaches GrubHub takeover, shares snowball

Uber Technologies Inc., the San Francisco, CA-based American multinational ride-sharing pioneer offering a swathe of services ranging from peer-to-peer ridesharing to electric bikes and scooters to online food delivery, had been in an advanced stage talk to takeover an Illinois, Chicago-based online food delivery company GrubHub in an all-stock deal, a person directly briefed over the subject-matter had unveiled on Tuesday, the 12th of May 2020, on condition of anonymity as the source was not authorized to speak over the issue on public.

Concomitantly, followed by the reveal of Uber Technologies Inc.’s latest move to purchase GrubHub, several analysts were quoted saying that the deal in effect would narrow down the CA-based ride-sharing pioneer’s distance with the market leader DoorDash, while the NYSE-listed shares’ prices of GrubHub jumped as much as 28.96 per cent to $60.39 per share on Tuesday’s (May 12th) Wall St.

wind down and Uber Technologies Inc. had closed down the day 5.05 per cent to $32.37 per share after rising as much as 11.50 per cent in US mid-day trading hours. Meanwhile, voicing a cautiously optimistic tone over the deal, an Uber spokesman was quoted saying following reveal of Tuesday’s (May 12th) media report that the company did not respond to speculative M&A, but such consolidation could make sense in the industry.

As of March 31st 2020, DoorDash had 42 per cent market share, while Uber Eats and GrubHub had 20 per cent and 28 per cent respectively, suggesting a merger could substantially aid Uber at its uphill battle in US meal delivery services industry, which had witnessed a growth of 24 per cent over the first quarter of the year on an annualized basis.