(Photo curtesy huntingtonian.com)
Like an episode of The Bachelor, food delivery service Grubhub started out with multiple suitors, but it’s now down to the final rose.
After nearly a month of back-and-forth, Grubhub has walked away from a potential acquisition from Uber and will instead merge with European company Just Eat Takeaway.
The all-stock deal, valued at $7.3 billion, will give Just Eat Takeaway a foothold in the US food delivery market. The new combined operation will have over 70 million combined active customers globally.
Why didn’t Grubhub accept a proposal from fan-favorite Uber? Well, an acquisition from Uber would have come with too much baggage. The US government is weary of mergers that might decrease competition and hurt consumers. Because of these antitrust concerns and the fear that US regulators might step in, Uber pulled out of the deal.
Since Just Eat doesn’t have a US presence, the antitrust risk of such a merger is much lower. Just Eat and Grubhub don’t compete in the same market, so their merger doesn’t pose a threat to competition.
The US government approves.