GrubHub stock soared Tuesday on a report that Uber is in talks to buy the food delivery service in an all-stock deal that would merge two of the country's largest on-demand meal platforms.
GrubHub reacted to the Wall Street Journal report by saying that "consolidation could make sense in our industry."
"We remain squarely focused on delivering shareholder value," the company said. "Like any responsible company, we are always looking at value-enhancing opportunities. That said, we remain confident in our current strategy and our recent initiatives to support restaurants in this challenging environment."
|UBER||UBER TECHNOLOGIES, INC.||43.61||-1.51||-3.35%|
|GRUB||JUST EAT TAKEAWAY.COM NV||13.46||-0.26||-1.90%|
Uber, which runs meal delivery service UberEats under its on-demand ride-hailing business, reportedly approached GrubHub earlier this year about the potential takeover. The deal could be finalized as soon as this month, according to Bloomberg.
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Food delivery demand has been at an all-time high during the coronavirus pandemic, with many Americans still sheltering in place.
A food delivery courier for Grubhub Inc. wears a protective mask in New York, U.S., on Monday, April 6, 2020. (Jeenah Moon/Bloomberg via Getty Images).
Uber Eats saw gross bookings of $4.68 billion in its first quarter, up 52 percent over a year ago, TechCrunch reported. Meanwhile, Chicago-based GrubHub experienced gross food sales spike to $1.6 billion, up from $1.5 billion during the same time period last year.
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A GrubHub spokesperson told FOX Business earlier this month that the service had seen an uptick in new restaurants joining the service.
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If the acquisition goes through, Uber Eats would still face competition from companies like DoorDash and Postmates.