The all-stock deal is expected to close in the first quarter of 2021. Grubhub will instead merge with European company just eat takeaway.
Uber was looking to buy GrubHub because the combined food ordering and delivery service would have rivaled, or even surpassed, market leader DoorDash. An acquisition of GrubHub would have been so significant that it was already drawing regulatory heat.
Grubhub’s unsavory business practices include using misleading websites and phone numbers in order to charge burdensome, even predatory fees, or setting up websites for restaurants that are n’t even on its platform. Uber reportedly balked in recent days.
Uber believes that its food delivery business needs to get bigger in order to turn a profit. That does n’t mean we are interested in doing any deal, at any price, with any player.
Just eat takeaway is a merger between British service just eat and Dutch company Takeaway.com. The deal will still likely draw some scrutiny, just not as much.
‘we share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth,’ GrubHub’s CEO Matt Maloney said.