Uber is in talks to buy GrubHub in an all-stock deal, The Wall Street Journal reports. This comes a few months after reports emerged that GrubHub was looking to sell Uber, DoorDash and others.
According to the report, Uber approached GrubHub earlier this year with an offer, but the two companies are still in talks. Another report says the deal could be finalized sometime this month.
Amid the COVID-19 pandemic, food delivery has been hot. In Q1, Uber Eats experienced major growth with gross bookings of $4.68 billion, up 52% from that same quarter one year ago. GrubHub, meanwhile, saw gross food sales increase to $1.6 billion, up from $1.5 billion in the same period last year.
Still, UberEats had just 20% of the market share and GrubHub had 28% in March 2020, while DoorDash accounted for 42% of it, according to Second Measure. A merger of UberEats and GrubHub would undoubtedly help Uber gain more dominance in the on-demand food delivery space.
Uber is currently trading up 7.65% at $34.05 per share and GrubHub is trading up 28.61% at $60.23 pre share.
GrubHub declined to comment for this story. We’re still awaiting a response from Uber.

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