Uber Makes Takeover Approach To Grubhub

phalse phace shares a report from The Wall Street Journal: Uber is seeking to acquire Grubhub in an all-stock deal that would unite two of the biggest players in meal delivery at a time when the coronavirus pandemic has sparked a surge in demand for their services. Uber, which in addition to its flagship ride business operates a big meal-delivery unit known as Uber Eats, earlier this year approached Grubhub with a takeover offer and the companies continue to discuss a possible combination, according to people familiar with the matter. Grubhub recently proposed a deal in which its shareholders would receive 2.15 Uber shares for each Grubhub share, some of the people said.

Tweedle Dum meets Tweedle Dumber

[cusco]

Between the two of them they should be able to burn through a phenomenal amount of venture capital.

Re:

[XXeR]

Between the two of them they should be able to burn through a phenomenal amount of venture capital.

They're both publicly traded companies..

Uber Eats?

[thadtheman]

Wouldn't the DOJ have to aprove such a merger. Given Uber Eats, I think that could be problematic.

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[ShanghaiBill]

There are many other competitors and few barriers to entry.

I doubt if the DOJ will hold this up.

New name?

[DontBeAMoran]

1. Uber is seeking to acquire Grubhub.
2. Uber already has a big meal-delivery unit known as Uber Eats.
3. Gruber Eats
4. If they can get John Gruber to sign as a mascot, Profits!

Re:

[Aighearach]

And if they can't get him, they can hire Ed Gruberman!

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[DrusTheAxe]

Bah! Best spokesman would be Hans Gruber: "When you steal $600, you can just disappear. When you steal $600 million, they will find you unless they think you're already dead."

The same Uber that just laid of 3500 employees....

[zuckie13]

Yep, they couldn't afford all those employees, but apparently have the money to buy another company. I love how business works...

Re:

[youngone]

They're confused about cost and value, like most businesses.

As noted above, with a bit of luck they'll burn through a few more billions of venture capitalist's money, then die.

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[dcw3]

As someone above noted, they are publicly traded...no VC money involved.

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[phantomfive]

apparently have the money to buy another company.

They don't. They have stock to buy another company.

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[ShanghaiBill]

Yep, they couldn't afford all those employees, but apparently have the money to buy another company.

Business 101: You do what is profitable, not what you can afford to lose.

M&A

[swell]

Because Mergers and Acquisitions, Wall Street profits, executive bonuses and monopolies are more important than what's good for the country.

Consolidation

[spinitch]

Reduce overhead. Bye middle managers and admin. Reduce competition, hello higher prices. Yeah stockholders. Capitalism. They should spin off their foods delivery into a separate listed company. Much like SoftBank did with their telecom unit. The rest of Uber much less attractive.