# UBER is trying to buy GRUBHUB



## ANT 7 (Oct 14, 2018)

https://www.zerohedge.com/markets/uber-offers-acquire-grubhub-delivering-stock-price-surge
In a deal that would combine the two biggest meal-delivery players in the US at a time when the corona 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 - has made an offer to acquire Grubhub, Bloomberg and the WSJ reported.

According to the report, the companies - which have been engaged in talks since earlier this year- could reach an agreement as soon as this month, although deliberations are still ongoing and talks could still fall through. Should a deal be struck, it would reshape the meal-delivery business, a key pillar of the new economy whose prominence has been heightened by the pandemic.

Shares of both companies surged in response, with Grubhub shares spiking as much as 37% after being temporarily halted, valuing the company at $5.6 billion, while $57 billion Uber, which last week reported earnings that showed little cash flow improvement in its own Uber Eats unit despite a surge in revenue, rose as much as 4.1%.

As a reminder, last week Uber said it was shuttering its own food-delivery unit, Uber Eats. Those markets represented 1% of Uber Eats gross bookings and 4% of the company's EBITDA.


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## tohunt4me (Nov 23, 2015)

If Grub Hub waits too long

There will be NO MARKET !

Delivering groceries is bigger.
Economy will tank.
Most markets are ending Shelter at Home orders.

Market will dissolve.

Hope uber doesnt pay too much.


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## Jo3030 (Jan 2, 2016)

Uber didn't say Uber Eats was going away.
The entire article is done for me after that.


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## IR12 (Nov 11, 2017)

ANT 7 said:


> https://www.zerohedge.com/markets/uber-offers-acquire-grubhub-delivering-stock-price-surge
> In a deal that would combine the two biggest meal-delivery players in the US at a time when the corona 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 - has made an offer to acquire Grubhub, Bloomberg and the WSJ reported.
> 
> According to the report, the companies - which have been engaged in talks since earlier this year- could reach an agreement as soon as this month, although deliberations are still ongoing and talks could still fall through. Should a deal be struck, it would reshape the meal-delivery business, a key pillar of the new economy whose prominence has been heightened by the pandemic.
> ...


My friend started working at Uber (UE operations) 2014 when it was rolled out and cashed out in Jan 2020 told me UE was one of the major reasons Uber was unable to meet projections over the last 4 years.
Internally, they began to refer to UE as the black hole because it was such a mess.

Uber expected the partnership with MD's to make a huge difference & that hasn't panned out.

Between driver & restaurant screw ups, and customer reporting food was never received which generates refund plus they have to pay drivers, Uber was paying 2 - 3 times for the same order oftentimes.

Should be interesting.


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## Jo3030 (Jan 2, 2016)

God, I hope Uber doesn't buy Grubhub.
They will ruin it.


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## ABC123DEF (Jun 9, 2015)

Jo3030 said:


> God, I hope Uber doesn't buy Grubhub.
> They will ruin it.


Are you saying that everything Big Foober touches turns to  ? Did I translate that into English correctly? &#129300;


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## Jo3030 (Jan 2, 2016)

ABC123DEF said:


> Are you saying that everything Big Foober touches turns to  ? Did I translate that into English correctly? &#129300;


Yes LOL


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## SHalester (Aug 25, 2019)

As a customer I use both UE and GH. Mostly because some restaurants I use are not on one or the other. A combo would make that easier. BUT GH is a much more robust app and way way better marketing and 'deal' app. UE marketing attempts are lame in comparison. Kinda surprised a bank or group of bank would back this maybe offer. 
Until this dropped I was thinking Uber should sell or close UE all together. Oh well.


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## ABC123DEF (Jun 9, 2015)

Well, I'm going to go out on a limb and say that ANYTHING in the GrubHub app that gave the delivery driver an advantage or leg up...should disappear in the coming months due to Uber's GRUBBY hands and disdain for drivers.


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## Sgt Donny Donowitz (May 2, 2020)

Uber is gonna try to buy all the other food delivery services because they may not be in the ridesharing business much longer


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## mbd (Aug 27, 2018)

Never used Uber E , GH or Insta. Crank up my vehicle and go buy it :laugh:


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## IR12 (Nov 11, 2017)

ABC123DEF said:


> Well, I'm going to go out on a limb and say that ANYTHING in the GrubHub app that gave the delivery driver an advantage or leg up...should disappear in the coming months due to Uber's GRUBBY hands and disdain for drivers.


Absolutely. Greed is the boss at Uber.


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## Nats121 (Jul 19, 2017)

IR12 said:


> Between driver & restaurant screw ups, and customer reporting food was never received which generates refund plus they have to pay drivers, Uber was paying 2 - 3 times for the same order oftentimes.


If the customer reports not getting their order after a driver cancelled, the driver gets paid. If the customer reports not getting their order but the driver didn't cancel, the driver doesn't get paid.

I know this from experience when a scamming customer called Uber and told them he didn't get his order. I had just handed the guy his food a few minutes earlier at his apartment. The guy was a semi-regular customer who I had delivered to a couple of previous times. Uber took away my payout. I then called Uber and strongly made my case that the asswipe was lying. The rep returned my money.

The biggest negative would be the loss of a major alternative for the drivers.

You think Uber and Doordash treat their drivers like shit now, imagine how much worse they'll treat them without Grubhub as a competitor.



Jo3030 said:


> Uber didn't say Uber Eats was going away.
> The entire article is done for me after that.


The article failed to state that Uber closed Eats is some underperforming markets overseas, NOT here in the US.


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## IR12 (Nov 11, 2017)

Nats121 said:


> If the customer reports not getting their order after a driver cancelled, the driver gets paid. If the customer reports not getting their order but the driver didn't cancel, the driver doesn't get paid.
> 
> I know this from experience when a scamming customer called Uber and told them he didn't get his order. I had just handed the guy his food a few minutes earlier at his apartment. The guy was a semi-regular customer who I had delivered to a couple of previous times. Uber took away my payout. I then called Uber and strongly made my case that the asswipe was lying. The rep returned my money.
> 
> ...


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## Jo3030 (Jan 2, 2016)

I do Grubhub deliveries as a driver.
Uber will ruin them.


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## SHalester (Aug 25, 2019)

Jo3030 said:


> I do Grubhub deliveries as a driver.
> Uber will ruin them.


app wise won't be so bad if they take all the GH developers; UE developers must be the "B" team......


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## Ubercadabra (Oct 20, 2019)

If Uber buys em out what will they call it
Grub Huber


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## Johnny Mnemonic (Sep 24, 2019)

Uber needs GrubHub for sure. Question is, why does GrubHub need Uber?

https://www.marketwatch.com/story/uber-reportedly-rejects-all-stock-offer-to-buy-grubhub-2020-05-12


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## Don'tchasethesurge (Dec 27, 2016)

lol uber has not been profitable during normal times, nor a pandemic... they just wanna keep bleeding money....


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## cumonohito (Feb 13, 2018)

Who knows? This could be a case of addition by subtraction. Uber buys out a competitor, this is the subtraction part, and merge it with UE, this is the addition. By doing so, it takes away one of the biggest competitor in the field, while gaining a larger hare of the market along with additional accounts that are exclusive to GH. Maybe also throw in GH app developers, and in paper, Uber looks good.


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## SHalester (Aug 25, 2019)

Johnny Mnemonic said:


> why does GrubHub need Uber?


and really important what is Grubhub's reaction to the 'offer' of all stock.....


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## libingbing (Apr 17, 2017)

One money losing operation buys another money losing operation. What could go wrong.


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## IthurstwhenIP (Jan 12, 2018)

What tipping experience?


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## goneubering (Aug 17, 2017)

Jo3030 said:


> Uber didn't say Uber Eats was going away.
> The entire article is done for me after that.


I agree. Really stupid to be that misinformed.


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## Dammit Mazzacane (Dec 31, 2015)

CNBC reports similar information from its source: https://www.cnbc.com/2020/05/12/grubhub-stock-halted-after-report-uber-is-eyeing-a-takeover.html

Uber has rejected the proposal to buy Grubhub for 2.15 Uber shares per share of Grubhub.
...
Uber previously held merger talks with DoorDash, but the talks went nowhere, according to a person familiar with the matter.
....

On top of this:
Last week, Uber led a $170 million investment in scooter company Lime, which resulted in an integration of the two companies' products. As part of the deal, Uber handed over its own scooter and bike business, called Jump, to Lime. The Lime and Uber apps will eventually integrate.



SHalester said:


> and really important what is Grubhub's reaction to the 'offer' of all stock.....


I guess they're cool with it if they set a benchmark Uber wouldn't accept: Uber has rejected the proposal to buy Grubhub for 2.15 Uber shares per share of Grubhub.


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## Mista T (Aug 16, 2017)

Tell it like it is, sir.


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## goneubering (Aug 17, 2017)

Any deal might also have to clear potentially formidable regulatory hurdles before being finalized. However, *Uber appears to be raising cash, with a $900 million bond sale yesterday selling five-year notes with a 7.5% yield. Uber says the net proceeds will be used for purposes that "may include potential acquisitions and strategic transactions."*

https://www.fool.com/investing/2020/05/14/grubhub-and-uber-may-be-haggling-over-price-as-ube.aspx


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## whatyoutalkinboutwillis (Jul 29, 2017)

IR12 said:


> My friend started working at Uber (UE operations) 2014 when it was rolled out and cashed out in Jan 2020 told me UE was one of the major reasons Uber was unable to meet projections over the last 4 years.
> Internally, they began to refer to UE as the black hole because it was such a mess.
> 
> Uber expected the partnership with MD's to make a huge difference & that hasn't panned out.
> ...


That's because there are too many holes in the system for eaters and drivers to exploit. It was so bad that McDonald's had us sign our lives away to verify that we'd taken the food. My guess is that the eater claimed they didn't get the food or the driver claimed the eater wasn't at the delivery site.


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## goneubering (Aug 17, 2017)

https://www.thestreet.com/investing/grubhub-wants-termination-fee-condition-in-uber-deal
Grubhub and Uber's food-delivery business have thrived during the coronavirus pandemic, with Grubhub reporting a 12% sales increase for its first quarter.

Grubhub shares recently traded at $57.39, up 8.6%, and Uber was at $35.48, up 3.9%. Grubhub stock has climbed 18% over the past three months, and Uber stock has gained 4%.


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## Seamus (Jun 21, 2018)

goneubering said:


> https://www.thestreet.com/investing/grubhub-wants-termination-fee-condition-in-uber-deal
> Grubhub and Uber's food-delivery business have thrived during the coronavirus pandemic, with Grubhub reporting a 12% sales increase for its first quarter.
> 
> Grubhub shares recently traded at $57.39, up 8.6%, and Uber was at $35.48, up 3.9%. Grubhub stock has climbed 18% over the past three months, and Uber stock has gained 4%.


well.....a year ago it was at $80. Also, 1qtr 2020 earnings are way down from 2019. 90 days ago stock price was $55

Not sure that the last 3 months has been as shining a star as you think although I'm sure it outperforms Uber.


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## REX HAVOC (Jul 4, 2016)

Jo3030 said:


> God, I hope Uber doesn't buy Grubhub.
> They will ruin it.


What so great about GH?


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## Tr4vis Ka1anick (Oct 2, 2016)

ABC123DEF said:


> Are you saying that everything Big Foober touches turns to  ? Did I translate that into English correctly? &#129300;


 Chocolate soft serve ice cream? Yummy!


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## Jo3030 (Jan 2, 2016)

REX HAVOC said:


> What so great about GH?


At least from my perspective, you see where you start, where you end and the pay associated.
Uber touches it and they'll ruin it, I guarantee it!


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## Launchpad McQuack (Jan 8, 2019)

REX HAVOC said:


> What so great about GH?


I wouldn't say that GrubHub is great, but it's good to have competition.


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## 1.5xorbust (Nov 22, 2017)

https://www.cnn.com/2020/06/10/tech/grubhub-just-eat-takeaway-uber/index.html


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## Jo3030 (Jan 2, 2016)

Great to see Uber lose out.


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## Launchpad McQuack (Jan 8, 2019)

Jo3030 said:


> Great to see Uber lose out.


Yeah, at least they won't merge their operations. We'll see what the European ownership has in store for GrubHub drivers.


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