InvestorQ : How will Uber benefit from buying GrubHub Inc?
manisha Kolvenkar made post

How will Uber benefit from buying GrubHub Inc?

Mahima Roy answered.
1 year ago

Uber Technologies is in advanced talks to buy online food delivery company GrubHub Inc in an all-stock deal. GrubHub has a market cap of $4.3 billion, while Uber is valued at $55 billion. There has been no confirmation from either side. Uber’s restaurant food delivery business, Uber Eats, surged more than 50% to $819 million on a yearly basis in the recently quarter as COVID-19 restrictions made their model valuable. However, Uber Eats has been a drag on the company's bottom line since inception in 2014. Uber has already shut down its food delivery business in India and closed Eats in 8 countries. GrubHub and its subsidiaries took 28% of delivery sales and it gives Uber access to ready expertise rather than reinventing the wheel all over again.