With potential suitors coming in from the US, Netherlands, and Germany, Grubhub has finally agreed on a deal to merge with Just Eat Takeaway. This comes after deal talks with Uber collapsed over antitrust issues and clauses. Grubhub opted for the higher $7.3 billion all-stock bid from the Dutch food delivery service over Uber’s proposed $6 billion bid.
The deal with Just Eat Takeaway makes more sense from Grubhub’s perspective. As one of the only delivery apps running a profitable business model, Grubhub is well positioned to remain a competitive force in the space as it competes against market leader, DoorDash. They also gain a more global reach by merging with Just Eat Takeaway, which operates in many European countries including Portugal, France, the Netherlands, Germany, and Switzerland among others.
For Uber, missing out on this deal will be very disappointing. Acquiring Grubhub would have vaulted the combined company over DoorDash in terms of market share, while also steering the company towards profitability through the potential $1.9 billion in synergies. The antitrust risk was too much to handle for Grubhub, who pushed for a breakup fee in the contract in case the deal with Uber ran into regulatory roadblocks.
Grubhub CEO, Matt Maloney, went on CNBC this morning to discuss the deal and what led up to agreeing to a deal with Just Eat Takeaway over Uber. The interview is linked at the bottom of the article. What are your thoughts the mobile delivery space, and what this means for Uber going forward? Feel free to comment below or send me a message. Thanks for reading!
Matt Maloney interview: https://www.youtube.com/watch?v=8dXExjG7ZDQ
Original write-up on the potential Uber-Grubhub deal: https://asvpcapital.finance.blog/2020/06/10/potential-acquisitions-of-grubhub/
ASVP Capital Insights 
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