Amid ongoing discussions with Uber on a potential deal, two food delivery platforms in Europe, Delivery Hero and Just Eat Takeaway.com, have each noted interest in a merger with Grubhub, CNBC reported, citing unnamed sources.
The sources told CNBC that Bank of America is serving as advisor for Just Eat Takeaway.com.
Grubhub brings in most of its sales domestically, with service to over 1,600 US cities, but the company also runs in London.
An arrangement with a firm located in Europe, however, would probably have much less regulatory risk than a combination with Uber that would bring together the largest and third biggest food delivery services and control roughly 55% of the space per Wedbush Securities.
Bank of America and Just Eat Takeaway representatives turned down a request for comment, while Grubhub could not be reached immediately per CNBC.
A representative for Delivery Hero would not offer a comment on specifics, but said, “As the world’s leading local delivery platform, we are committed to invest in sustainable growth and gain leadership positions in the markets we operate in.”
The representative continued, “Being a global leader in the delivery industry, we are regularly looking at potential transactions to evaluate new opportunities.”
Grubhub has been in discussions with Uber on a sale and has a market valuation of approximately US$5.4 billion. The talks are still occurring and could potentially lead to a deal.
The news comes after it was reported that another large obstacle has emerged in Uber’s bid to purchase Grubhub: The food delivery company wants a large payoff if federal regulators prevent the deal.
Some Democrats in Congress are asking for a US Justice Department probe into the arrangement due to antitrust issues. Legislators were already worried about fees such firms charge eateries as well as their treatment of workers.
Delivery fees range from 10% all the way up to 40% , and some local governments have considered putting limits on the allowed charges — at least until the coronavirus closures are relaxed.
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