Grubhub has struck a $7.3 billion deal to merge with European meal-delivery giant Just Eat Takeaway, turning its back on Uber in a surprising twist in the scramble for mergers among food-delivery companies, according to the Wall Street Journal. The move would create a trans-Atlantic food-delivery giant at a time when industry players are seeking scale to help them cope with a landscape that includes booming demand but also fierce competition.
- Be Smart: Grubhub, which went public in 2014 and operates other brands including Seamless, was the leader in the industry and the only major U.S. player to turn a profit. But its margins came under pressure in the past year as it spent to ward off competition, and DoorDash is now No. 1 in the U.S. market.
- Worth Noting: DoorDash is close to securing new funding that would value the company at more than $15 billion. The closely held company plans to sell hundreds of millions of dollars of equity to existing backer T. Rowe Price Group and Fidelity Investments. SoftBank’s Vision Fund, another existing DoorDash investor, is considering participating. [WSJ]