Michael97 Posted May 13, 2020 Share Posted May 13, 2020 Hello, I read this morning that Uber is trying to acquire Grubhub. What is the latest on the deal and if you can share your assessment on the expected impact on Uber stock price? Quote Link to comment Share on other sites More sharing options...
0 Criss Edward Posted May 13, 2020 Share Posted May 13, 2020 Hi Michael, thanks for asking. As you mentioned, Uber made a takeover approach for the meal-delivery firm Grubhub with an aim to complete the all-stock deal as early as this month. The New York Times reported that Grubhub made a counter offer, asking for two shares of Uber for each of its own. Uber is obviously trying to take on DoorDash, the largest food delivery company in the U.S., by combining its Uber Eats with Grubhub, which is currently valued at around $5.5 billion. If combined, these two would acquire a 55% market share. However, the takeover attempts have drawn strong criticism For instance, Uber Eats’ market share would rise to almost 80% in New York, creating a monopoly. “How is this better for the citizens in New York City? I think [regulators] will very keenly focus on that,” said William Kovacic, a former chair of the US Federal Trade Commission. Uber stock price gained around 2.5% yesterday on the news before the sellers were able to erase all gains and push the price action lower. The real winner of the day was Grubhub, who saw its shares skyrocket nearly 30% on the reported takeover talks. Quote Link to comment Share on other sites More sharing options...
0 Ryan Hall Posted July 8, 2020 Share Posted July 8, 2020 Hello Michael, thanks for asking the question. Shares of Uber (NYSE: UBER) advanced 6% in Monday trading. The ride-hailing company said its $2.65 billion takeover deal for Postmates Inc. will make the company one of the strongest competitors in restaurant and grocery delivery services. With the acquisition, Uber will extend its range of items delivered to consumers’ homes. The deal would also make Uber the second-largest restaurant delivery service in the United States by market share, after DoorDash Inc., according to research company Edison Trends. Quote Link to comment Share on other sites More sharing options...
0 Harry Clark Posted July 21, 2020 Share Posted July 21, 2020 Hi Michael, thanks for being here. At the start of the month, Uber (NYSE: UBER) purchased its long-time rival Postmates for $2.65 billion. The acquisition of Postmates will be a significant boost to Uber’s food delivery business. The ride-hailing company is now the second-largest company in this sector, after DoorDash. The deal will enable Uber to make profits on potential revenue from the food delivery industry which has skyrocketed since the restaurants closed due to the pandemic. Investors think Uber made the right move with the Postmates deal, resulting in rise of Uber’s shares by 6% on the day the deal was announced. Uber tried to buy Grubhub (NYSE: GRUB) at the start of the year but the deal couldn’t be completed. Nonetheless, the Postmates deal will probably bring many long-term wins to Uber. Quote Link to comment Share on other sites More sharing options...
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Michael97
Hello, I read this morning that Uber is trying to acquire Grubhub. What is the latest on the deal and if you can share your assessment on the expected impact on Uber stock price?
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