Chicago food delivery company Grubhub is reportedly considering a sale or other strategic options as the company faces increased competition and a slumping stock price.
According to the Wall Street Journal, Grubhub has hired financial advisors to explore potential options, which could include a sale or an acquisition. The WSJ report noted that talks are at an "early stage" and it's possible no moves could materialize.
Grubhub's stock was up more than 10 percent on the news early Wednesday afternoon.
Grubhub's market cap is currently around $5 billion, which is less than half of what its market value was last year when it reached a high of $13 billion.
The company has also faced increased competition in the food delivery space. Rival DoorDash has spent heavily to acquire a 35% food delivery marketshare, compared to 30% for Grubhub and 20% for Uber Eats, according to data from consumer analytics firm Second Measure.
Grubhub's stock fell more than 40% in October after posting disappointing quarterly earnings after missing on revenue and posting a fourth-quarter forecast below Wall Street’s expectations.
Founded in 2004, Grubhub went public in 2014 and is one of just a handful of VC-backed startups to IPO in Chicago in recent years.
More to come
