Uber Tumbles on Report It’s Close to Ending Talks with Grubhub
Uber Technologies Inc. shares tumbled after a report said the ride-hailing company is close to ending merger talks with Grubhub Inc. due to antitrust concerns.
Grubhub, the meal-delivery company, will likely merge with a European rival instead, according to CNBC’s David Faber. Several Democratic lawmakers expressed concerns over the potential deal, CNBC reported.
Uber fell 4% to $35.14 on the report. A representative for Uber couldn’t immediately be reached for comment.
The deal was seen as a way to bolster a part of Uber’s business that executives see as crucial to growth and eventually to turning a profit. The coronavirus pandemic is driving a surge in demand for food delivery as many restaurants keep dining rooms closed and people are spending more time at home. The virus is also decimating Uber’s main business of ride hailing, resulting in mass job cuts at the company.
Delivery Hero SE and Just Eat Plc have also reportedly expressed interest in exploring a deal with Grubhub. The Wall Street Journal reported Wednesday that Grubhub is near an all-stock deal with Just Eat Takeaway.com.
Source: Read Full Article