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

How will Uber benefit from buying GrubHub Inc?

Mahima Roy answered.
11 months 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.