Uber raises US$900 million in debt sale for acquisitions
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On Wednesday, May 13, Uber announced that it had raised US$900 million in a debt sale for potential acquisitions.
The American multinational ride-hailing and food-delivery company is in acquisition talks with food-delivery service, Grubhub. This comes several months after reports emerged that Grubhub was looking to sell. If the sale comes through, the merger would create a huge player in the food-delivery industry.
Over 80% of Grubhub’s orders come from independent restaurants. Analyst Andrew Charles of US-based multinational investment bank Cowen & Co. says: “Consolidation makes sense as scale and reduced competition can help ease cost pressures,” due to cities capping restaurant delivery fees at anywhere between 5% to 15%.
In March of this year, Uber Eats had 20% of the market share in the United States, while Grubhub and its subsidiaries held a reported 28%. Both fell behind competitor DoorDash, which stood at 42% of the market share in consumer meal delivery sales.
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