Please ensure Javascript is enabled for purposes of website accessibility

Uber Eyes Purchase of Grubhub to Expand Its Food Delivery Service-Report

By Donna Fuscaldo – May 12, 2020 at 2:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Uber and Grubhub have been in talks for a while with an all-stock deal potentially on the horizon.

Uber (UBER 8.83%) is in discussions to acquire food delivery company Grubhub (GRUB) in what could be a transformative deal. 

Citing people familiar with the matter, The Wall Street Journal reports that the two sides have been holding talks for a while now and could reach an all-stock transaction in the coming days. Uber's board plans to examine the deal during the next few days, reports the WSJ

A man wearing a surgical mask delivering food to a home.

IMAGE SOURCE: GETTY IMAGES.

If a deal does transpire, it would bring together two of the leading meal delivery services in the U.S. Uber's core ride-hailing service has plummeted due to social distancing rules, although UberEats has enjoyed growth. Grubhub could help it further diversify into meal delivery. 

Under rumored the terms of the deal, Grubhub shareholders would get 2.15 shares of Uber, amounting to about $68 per Grubhub share as of the close of trading Monday. Recently, shares of Grubhub are surging on the deal talks. 

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GrubHub Inc. Stock Quote
GrubHub Inc.
GRUB
Uber Technologies, Inc. Stock Quote
Uber Technologies, Inc.
UBER
$29.08 (8.83%) $2.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.