SAN FRANCISCO — Uber is holding buyout talks with Grubhub as it seeks to combine Uber Eats with a rival restaurant delivery business, the Wall Street Journal reported Tuesday.
Earlier this year, San Francisco-based Uber extended a buyout offer to Chicago-based Grubhub and it responded with a suggested purchase price of 2.15 Uber shares for every share of Grubhub, according to the Wall Street Journal. Uber’s board is expected to review Grubhub’s proposal in the days ahead, the Journal noted.
Grubhub stock closed today at $60.39 per share, up nearly 29% on the day. It has a market cap of $5.8 billion, a fraction of Uber’s market cap of $57.3 billion. Uber was up 2.31% to $32.40
As Uber Eats dukes it out with other food delivery services like Grubhub, San Francisco-based DoorDash and others players for the No. 1 or No. 2 spot in all the markets that it serves, that competition is eating into its profit margins despite its strong revenue growth.
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