The European counterpart—Just Eat Takeaway.com—to the US food delivery service GrubHub is currently in advanced-stage talks to purchase the US-based company. The estimated price tag: a whopping 7.3 billion dollars. The merger of these two companies would effectively create the world's biggest food ordering service second only to that which currently exists in China. And it would enable Just Eat Takeaway.com to enter into the US market, one that is currently on a definite uptick given recent events especially.
Some Key Facts to Keep in Mind...
- Just Eat was acquired themselves and this led to the creation of Just Eat Takeaway. The company with which they merged was based in Amsterdam, Takeaway.com. That deal came in at 7.7 billion.
- Uber was originally in talks to merge with GrubHub. However, they pulled out just this past week. Coming under fire from regulators, Uber did not progress further in the talks. Such a merger would have combined the two largest food delivery services based in the US.
- As millions have been at home in one form or another over the past couple of months, the takeover isn't all that surprising. Food ordering and delivery services are on a decisive rise. This is by far "their" moment. What GrubHub and Just Eat Takeaway.com can accomplish is virtual without limit.
- The deal is scheduled to be concluded by the early portion of 2021 upon approval from regulators as well as all relevant company shareholders.
Some Important Background Info
As a result of circumstances over the past few months, consolidations of companies such as this have become rather common. And especially when talking about food delivery services, as there has been such incredibly high demand as of late, merging resources and capabilities seems a logical next step for some companies. For those unprofitable food delivery businesses, merging could be a huge lifeline for them moving forward over the next months and even years.
That said, some are wary of such large scale consolidation as that which is to take place between giants such as GrubHub and Just Eat Takeaway.com. This is likely why the Uber merger never got past the talking stage. Had those two entities merged, they would've realized a forty-five percent share of the US food delivery service market? Doordash alone currently has a forty-five percent market share. Regulators have grown frustrated. New York City Mayor Bill de Blasio sought to cap commissions at ten percent. What the future holds for this particular merger and how consequently it'll affect food ordering and delivery services in this country and abroad remains to be seen.
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