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Update: <\/strong>Just Eats Takeaway confirmed today<\/a> in a release that “it is in advanced discussions with Grubhub regarding an all-share combination of Just Eat Takeaway.com with Grubhub <\/a>.” More when we have it.<\/em><\/p>\n Reports this morning indicate that Uber, <\/a> the American ride-hailing giant with a global footprint, will lose out on its attempt to buy<\/a> Grubhub, an American food ordering and delivery service. Uber competes with Grubhub domestically with its Uber Eats service; a tie-up between the two could have given Uber suffocating market share in the United States<\/a>, and thus improved economics.<\/p>\n Losing Grubhub to European-rival Just Eat Takeaway — the Wall Street Journal broke the news<\/a> — is difficult news for Uber. Its shares are off nearly 5% today after the news while Lyft, its local rival in ride-hailing, is off a more modest 2.5%.<\/p>\n Reports last week named two European companies as potential acquirers<\/a> of the American company; the story of Uber losing out to a different company in its pursuit of Grubhub intensified this morning when CNBC reported<\/a> that the ride-hailing company could drop its bid over anti-trust concerns.<\/p>\n Investors are less than enthused that Uber failed to close the Grubhub deal, if reports hold up.<\/p>\n The why is simple enough: Without Grubhub, Uber Eats is merely another money-losing food delivery service that has a long maturity cycle ahead of it before it helps lower its parent company’s unprofitability. Ride-hailing, Uber’s traditional bread-and-butter, and source of positive contribution margin, is currently recovering from pandemic-driven lows.<\/p>\n But without Grubhub and a greater ability to squeeze money from restaurants that more market might have afforded Uber, its near-term economics may prove slow to improve. Ride-hailing is coming back, but is still generating revenues lower than from year-ago totals.<\/p>\n With Uber Eats putting up around<\/a> $100 million in negative <\/em>adjusted EBITDA each month, food delivery is little help to the unprofitable megacorp.<\/p>\n More when the deal is announced today, if it is as currently anticipated.<\/p>\n Tags:<\/b> Alex Wilhelm<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" <\/div>\nSee Campaign: <\/strong>https:\/\/crunchbase.com\/organization\/grubhub<\/a>
Contact Information:<\/b>
Alex Wilhelm<\/p>\n
<\/a>, Wire<\/a>, United States<\/a>, English<\/a><\/p>\n<\/div>\n
\nContact Information:<\/h3>\n
Update: Just Eats Takeaway confirmed today in a release that “it is in advanced discussions with Grubhub regarding an all-share combination of Just Eat Takeaway.com with Grubhub .” More when we have it. Reports this morning indicate that Uber, the American ride-hailing giant with a global footprint, will lose out on its attempt to buy Grubhub, an American food ordering and delivery service. Uber … Continue reading Uber shares tumble 5% as reports indicate it will lose Grubhub deal to European rival<\/span><\/a> Continue Reading