![European food delivery giants Delivery Hero and Just Eat Takeaway lining up to buy Grubhub [UPDATE]](https://siliconcanals.com/wp-content/uploads/2020/06/grubhub-750x375.jpg)
UPDATE: Just Eat Takeaway.com has just confirmed the tech media through a press release that the company is in advanced talks to buy Grubhub in an all-stock deal.
In a recent twist of events, European food delivery giants Just Eat Takeaway and Delivery Hero are reported to have shown their interest in a deal with Grubhub. Word is that the potential suitors for the US-based online and mobile food ordering and delivery marketplace show that the consolidation in this sector is unavoidable.
While CNBC reports that Grubhub could enter into a deal with Just Eat Takeaway and Delivery Hero, a report by Bloomberg suggests that US-based food delivery platforms Grubhub and Uber are likely in discussions about a deal. But lawmakers have already ruled out the possibility of a potential merger between the two.
Besides this, the report also notes that Just Eat Takeaway is also working out a potential deal with Bank of America. And, a Delivery Hero spokesperson has stated, “[b]eing a global leader in the delivery industry, we are regularly looking at potential transactions to evaluate new opportunities.”
European companies can tap into the US
If Just Eat Takeaway and Delivery Hero enter into a deal with Grubhub, then these companies will be able to tap into the US food delivery industry, which is what Just Eat attempted in the past. However, the company had to pull out its subsidiary, SkipTheKitchen from the US markets in Ohio, New York, Missouri, and Nebraska.
Be it Just Eat Takeaway or Delivery Hero, both are popular in this industry in Europe. Notably, the former became one of the largest food delivery companies in the world following the merger of Just Eat and Takeaway back in April for $7.6 billion. On the other hand, Delivery Hero has secured a huge capital amount that will be used towards profitability.
While Uber and Grubhub are also rumoured to be in talks of a deal, an acquisition by the European companies makes sense as it could be a better option. Moreover, a deal with Delivery Hero or Just Eat Takeaway is not likely to come with the same amount of antitrust scrutiny. This will also make Grubhub a leader in the food delivery industry in the US.
If the rumours turn out to be authentic, then the US food delivery startup could be an interesting acquisition as it is a leading US delivery aggregator. It is one of the four leading companies in the industry that is profitable and dominates the New York City market. While a slew of investors are on board with attractive deals, these rumours and reports have increased the Grubhub’s stock price.
Stock photo XanderSt/Shutterstock
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