Food delivery giants Uber have announced they are set to acquire competitor Grubhub to accelerate their already significant slice of this growing sector.
US market analyst’s and regulators have immediately given the thumbs down to the idea with some being quite vocal on consumer interests.
The potential acquisition has even seen some accuse Uber of ‘pandemic profiteering’.
Uber Grubhub acquisition – UK restaurants eye margins
UK restauranteurs will doubtless have their eyes on developments here, as greater market share for Uber isn’t necessarily good for them. With only the most fragile of markets currently in operation every bit of margin for restauranteurs needs to be maintained.
The timing does seem to have strategic merit for Uber, as restaurant delivery services are one of the few sectors of foodservice that remains strong.
As we start to look at emergence from the Covid-19 pandemic in the UK, fast food chains are already planning openings focused on delivery.
The UK restaurant landscape has already seen more change in the past few months than the past few decades. More, especially adjusted down margins will not be wanted.
Uber Grubhub acquisition – Price uncertain
Trying to get US regulators on side that the acquisition will be difficult, agreeing a price, as always will be the equally as difficult.
CNBC’s David Faber reported earlier today as his sources told him that Uber and Grubhub remain far apart on price. Faber’s report can be seen below.