In a recent Reuters article, Greg Roumeliotis, Akanksha Rana, and Lisa Baertlein write that, according to a source close to the deal, Uber Technologies is closing in on acquiring food delivery company GrubHub Inc. The article goes on to say that during what is likely to be an extended period of distress for its core business, Uber is looking to pivot and create a more formidable force in the growing food delivery market. Using data from the analytics firm Second Measure, the article states that during March of 2020 Uber Eats accounted for 20% of total meal delivery sales while GrubHub accounted for 28%. The largest competitor in the space was Door Dash which had 42% of meal delivery sales. Second Measure also noted that meal delivery services overall saw 24% year-over-year growth through March of 2020. The added scale from the combined companies would help achieve profitability in a space that typically operates on thin margins.
Read the Full Article Here: "Uber approaches GrubHub with takeover offer: source"
