For Uber, losing the deal is a blow to the company’s plan to increase revenue and eventually turn a profit from food delivery. Uber’s gross bookings for food delivery increased 52% to $4.68 billion in the same period, but the division’s loss also rose.Īnalysts have long said the unprofitable model in food delivery is unsustainable and expected consolidation. Gross food sales for Grubhub rose 8% to $1.6 billion in the first quarter, and the company reported a net loss of about $33 million. Profit margins are tight or nonexistent due to the stiff competition to sign the most popular restaurants and add customers. DoorDash Inc., the current leader in the U.S., and Uber have eaten up market share, leaving Grubhub with 23% as of the end of April, according to market research firm Second Measure.Įven as the pandemic has led to a surge in demand for food delivery as people spend more time at home, the industry has been defined by fierce competition. Matt Maloney, Grubhub’s chief executive officer, helped start the company in 2004 and led a merger with a competitor, Seamless, in 2013 to create what was then a dominant food delivery website. for its $8 billion acquisition of Just Eat. Less than two months ago, Takeaway received antitrust clearance from the U.K. Jitse Groen, the Dutch billionaire who created Takeaway in 2000 in his university dorm room, has been looking to expand aggressively over the last year. market, broadening its already-global reach that includes Australia, Brazil and Canada, in addition to its home base in Europe. Grubhub will launch Just Eat Takeaway into the U.S. The two companies had nearly aligned on a price but remained at odds over other issues, including terms of a breakup fee for Grubhub if the deal couldn’t be completed, people familiar with the matter said last month. Political pressure raised questions about whether U.S. The deal sidelines Uber Technologies, which had been in acquisition talks with Grubhub for at least a month.
Grubhub’s stock price rose about 6% in extended trading to more than $62, while the European company fell about 13%. Amsterdam-based Just Eat Takeaway said it will pay $75.15 per share for Grubhub in an all-stock deal with an equity value of $7.3 billion.
0 kommentar(er)
