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Grubhub on Wednesday was acquired by Dutch food delivery giant Just Eat Takeaway.com. The companies announced in a joint press release that they would merge in a deal valued at $7.3 billion. Shares of Grubhub shot up more than 6 percent in extended trading to $62.72. The merger puts an end to weeks of speculation …
Grubhub on Wednesday was acquired by Dutch food delivery giant Just Eat Takeaway.com.
The companies announced in a joint press release that they would merge in a deal valued at $7.3 billion. Shares of Grubhub shot up more than 6 percent in extended trading to $62.72.
The merger puts an end to weeks of speculation that Grubhub would be purchased by Uber, a deal that would’ve resulted in a food-delivery colossus controlling more than half of the market nationwide.
Sources close to the collapsed Uber deal said that the ride-hail giant walked away in part because of the hostility that Grubhub has faced in New York — the crown jewel of its US market. City lawmakers have capped the fees that delivery services can charge, and a city council-member recently called Grubhub a “leech” that is “sucking the life and blood out of restaurants.”
Uber was concerned, the source said, about further legislation that would hurt Grubhub’s business. Shares of Uber finished the day down 4.8 percent, and were down an additional 1.2 percent in extended trading, to $34.40.
Experts say consolidation is long overdue in the food-delivery space, where demand is surging, especially as many people stay-at-home to combat the spread of the coronavirus.
Grubhub’s stock was in the red near the end of the regular trading day, but began to rise after The Wall Street Journal reported that the deal with Just Eat would value Grubhub at $70 per share.
Subject to regulatory clearance, the transaction is expected to close in the first quarter of 2021.
With Post wires
