As to CNBC, there are two suitors rivaling Uber for purchase of the US food delivery company Grubhub: Just Eat Takeaway (the union of Just Eat and Takeaway) and Delivery Hero.
Both are European companies perhaps looking for a major entry to the United States market. Just Eat Takeaway is based in the UK and the Nederlands, while Delivery Hero is based in Germany. They are both lavishly funded, with Just Eat Takeaway having raised around USD 1 billion (a combined tally for both companies that now make up the conjoined entity) and Delivery Hero flush with billions in historical capital.
Public market investors are optimistic on what the companies might pay. Shares of Grubhub shot higher on news that other suitors were in the mix.
According to various reports, Uber and Grubhub are struggling to find the right price for the smaller company’s assets. Uber Eats is a domestic competitor to Grubhub, making the tie-up attractive to the larger company from a competitive perspective.
If Uber can eliminate one of its chief rivals while absorbing its market share, then perhaps the company best known for its ride-hailing business would be able to extract more cash from food delivery, lessening its regular losses from the activity.
Source: TechCrunch, Crunchbase