GrubHub is in the Talks for a 7.3 Billion Dollar Merger

By: First Union | Date:

resources

GrubHub is in the Talks for a 7.3 Billion Dollar Merger

See Your Loan Options

Get Started

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.

First Union Lending is in the business of helping small companies grow and thrive. Our fast and flexible loan programs can be used for virtually whatever your business needs—even just to weather the storm. Call today and let's see how we can help get your business back on its feet!

Better Business Bureau
5 star rating
Trustpilot reviews

First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well.

Copyright © First Union Lending, LLC. 2021