Uber Makes a Bid for GrubHub

Reuters  |

Image source: Uber Technologies

(Reuters) - Uber Technologies Inc has made an offer to buy online food delivery company GrubHub Inc, Bloomberg News reported on Tuesday.

The two companies are currently in talks about a deal and could reach an agreement as soon as this month, the report said, citing people familiar with the matter.

Shares of GrubHub jumped about 25% at $58.44, while those of Uber were up 4%.

GrubHub’s market capitalization stood at about $4.3 billion, while Uber was valued at nearly $55 billion, as per Monday’s close, according to Refinitiv data.

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Separately, the Wall Street Journal reported that Uber proposed an all-stock deal with GrubHub.

Ride-hailing company Uber said it does not comment on rumors and speculations, while GrubHub declined to comment.

Global lockdown orders aimed at curbing the spread of the virus have been a silver lining amid the health crisis for Uber’s loss-making food delivery unit, with many new customers and restaurants signing up for the service as eateries were shut.

Uber’s revenue from restaurant food deliveries rose by more than 50% to $819 million on a yearly basis in the recently reported first quarter.

Reporting by Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli.

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Source: Reuters

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