Uber Said to Offer $6 Billion for Meal Delivery Rival Grubhub

The two firms were not in agreement on a deal that would unite two of the three largest US players in the food delivery segment, according to sources.

By Agence France-Presse | Updated: 14 May 2020 15:14 IST

Uber Said to Offer $6 Billion for Meal Delivery Rival Grubhub

Uber and GrubHub are two of the three largest food delivery startups in US

Highlights

The $6 billion share offer was first reported by The Wall Street Journal
Grubhub shares slipped 3.7 percent on Wednesday
Uber is seeing a strong growth in its food delivery operation Uber Eats

Uber is offering $6 billion (roughly Rs. 45,260 crores) in stock in its takeover bid for meal delivery group Grubhub, a source familiar with the talks said Wednesday.

The two firms were not in agreement on a deal that would unite two of the three largest US players in the food delivery segment, according to the source who declined to be identified.

The $6 billion (roughly Rs. 45,260 crores) share offer was first reported by The Wall Street Journal.

Uber Said to Approach Grubhub With Acquisition Offer

Grubhub shares, which rose sharply on the reports of a tie-up earlier this week, slipped 3.7 percent on Wednesday.

Neither company commented on the potential tie-up but Grubhub said in a statement it is "squarely focused on delivering shareholder value" and added that "like any responsible company, we are always looking at value-enhancing opportunities."

Uber has been seeing strong growth in its food delivery operation Uber Eats, partly offsetting the sharp decline in ride-hailing during the global pandemic.

According to the research firm Second Measure, Uber Eats accounted for 20 percent of US meal delivery sales in March and Grubhub had 28 percent. A combined operation would overtake number one player DoorDash, which had 42 percent.

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