After weeks of negotiations between Uber and Grubhub, a European food delivery company is now close to a deal to merge with the Chicago-based tech company.
Netherlands-based Just Eat Takeaway.com is nearing an all-stock deal to combine with Grubhub, according to the Wall Street Journal. In a press release on Wednesday, Just Eat confirmed it is in advanced talks "regarding an all-share combination of Just Eat Takeaway.com with Grubhub."
A deal could be finalized as early as Wednesday, according to the WSJ.
Talks between Grubhub and Uber had taken place on-and-off for more than a year, according to CNBC, who also reported Wednesday that Uber is likely to pull out of a potential merger due to antitrust concerns. Several U.S. senators previously sent a letter to antitrust officials urging scrutiny of the deal, should it go through.
A deal with Just Eat, which doesn't have a presence in the U.S., could be more appetizing to regulators. The company was created earlier this year when U.K.’s Just Eat and Netherlands-based Takeaway.com merged in an $11.1 billion deal.
The WSJ noted that there's no guarantee a deal between Grubhub and Just Eat will transpire.
The food delivery consolidation talks take place as the industry comes under increased scrutiny for the fees they charge restaurants during the Covid-19 pandemic. Restauranteurs say apps like Grubhub and Uber Eats are taking as much as 40 percent from an average order, making it difficult to sustain their businesses as delivery becomes the main driver of revenue during stay-at-home orders.
