Grubhub strikes deal to merge with European food delivery company Just Eat Takeaway after talks to join forces with Uber fall apart and competition mounts in the industry.
“Consumers should be able to look forward to a future in which online food delivery is more efficient, more innovative, and less expensive,” they said in the letter. “A merger of two of the three biggest rivals in an already concentrated market risks [deprives] consumers of that outcome by potentially eliminating competition between the existing market participants.”
This will be Takeaway.com’s second merger this year. In January, the Dutch company bought its British peer Just Eat in a $7.8 billion deal. The merged company now has leading positions in three of the world's four largest profit pools for food delivery: the U.K., Germany and the Netherlands, Just Eat Takeaway.com said in a statement.
The company said it has received more than 10 percent fewer orders since the fee caps were introduced. With competitors like Postmates and DoorDash, which are backed by Softbank, Grubhub's business has been in a bind. Demand for food delivery has skyrocketed during the coronavirus pandemic, but Grubhub's losses have mounted. The company reported a net loss of $33.4 million in the first quarter of 2020.
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