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| Uber Said to Be in Talks to Acquire Grubhub | Uber Said to Be in Talks to Acquire Grubhub |
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| SAN FRANCISCO — Uber is in talks to acquire Grubhub, said three people with knowledge of the discussions, aiming to create one giant player in food delivery as more people turn toward those services in the coronavirus pandemic. | SAN FRANCISCO — Uber is in talks to acquire Grubhub, said three people with knowledge of the discussions, aiming to create one giant player in food delivery as more people turn toward those services in the coronavirus pandemic. |
| Uber recently approached Grubhub with a potential all-stock takeover bid, said two of the people, who spoke on the condition of anonymity because the details were confidential. In response, Grubhub asked for two Uber shares for each of its shares, two of the people said. That would value Grubhub’s stock at more than $60 a share, pegging a deal at around $6.1 billion, or roughly a 25 percent premium to Grubhub’s closing price on Monday. | Uber recently approached Grubhub with a potential all-stock takeover bid, said two of the people, who spoke on the condition of anonymity because the details were confidential. In response, Grubhub asked for two Uber shares for each of its shares, two of the people said. That would value Grubhub’s stock at more than $60 a share, pegging a deal at around $6.1 billion, or roughly a 25 percent premium to Grubhub’s closing price on Monday. |
| The talks are still in process and could fall apart, the people said. | The talks are still in process and could fall apart, the people said. |
| The discussions are a sign of how thoroughly the coronavirus has upended everything from the way that people are eating to how businesses must shift to find new growth. While food delivery has been offered for years, use of the services has surged in the pandemic as consumers stay home and many restaurants remain shut down. | The discussions are a sign of how thoroughly the coronavirus has upended everything from the way that people are eating to how businesses must shift to find new growth. While food delivery has been offered for years, use of the services has surged in the pandemic as consumers stay home and many restaurants remain shut down. |
| At the same time, companies like Uber are trying to limit damage to their business from the coronavirus — its main ride-hailing business has cratered as people have stopped traveling — and double down on services that are growing. The food delivery business has also been highly competitive, with rivals regularly undercutting one another on delivery prices, so a deal that would unite two of the players could help reduce those pressures. | At the same time, companies like Uber are trying to limit damage to their business from the coronavirus — its main ride-hailing business has cratered as people have stopped traveling — and double down on services that are growing. The food delivery business has also been highly competitive, with rivals regularly undercutting one another on delivery prices, so a deal that would unite two of the players could help reduce those pressures. |
| A combined Uber Eats, the ride service’s meal delivery unit, and Grubhub would have about 55 percent of the food delivery market in the United States, according to Wedbush Securities. DoorDash, which has filed to go public and has 35 percent of the market, the firm estimated, would be its largest U.S. rival. | A combined Uber Eats, the ride service’s meal delivery unit, and Grubhub would have about 55 percent of the food delivery market in the United States, according to Wedbush Securities. DoorDash, which has filed to go public and has 35 percent of the market, the firm estimated, would be its largest U.S. rival. |
| “We’ve long believed that consolidation in online food delivery is inevitable, as too many companies with identical business models are depressing industry profitability via a cutthroat battle for market share expansion,” said Tom White, an analyst for D.A. Davidson. | “We’ve long believed that consolidation in online food delivery is inevitable, as too many companies with identical business models are depressing industry profitability via a cutthroat battle for market share expansion,” said Tom White, an analyst for D.A. Davidson. |
| But he added that if a deal happened, it would receive even closer regulatory scrutiny than usual, “given the impact any deal could have on a restaurant industry that is struggling to survive in the face of the pandemic.” | But he added that if a deal happened, it would receive even closer regulatory scrutiny than usual, “given the impact any deal could have on a restaurant industry that is struggling to survive in the face of the pandemic.” |
| David Cicilline, a Democrat from Rhode Island who leads the House antitrust committee, said in a statement, “We cannot allow these corporations to monopolize food delivery, especially amid a crisis that is rendering American families and local restaurants more dependent than ever on these very services.” | David Cicilline, a Democrat from Rhode Island who leads the House antitrust committee, said in a statement, “We cannot allow these corporations to monopolize food delivery, especially amid a crisis that is rendering American families and local restaurants more dependent than ever on these very services.” |
| After Bloomberg reported the talks between Grubhub and Uber, Grubhub’s shares soared 29 percent, while Uber’s rose more than 2 percent. | After Bloomberg reported the talks between Grubhub and Uber, Grubhub’s shares soared 29 percent, while Uber’s rose more than 2 percent. |
| In a statement, Uber said it was always looking to provide value to customers and addressed the sudden share price rises. “We have shown ourselves to be disciplined with capital, and we do not respond to speculative M&A premiums,” it said. | In a statement, Uber said it was always looking to provide value to customers and addressed the sudden share price rises. “We have shown ourselves to be disciplined with capital, and we do not respond to speculative M&A premiums,” it said. |
| Grubhub said in a statement: “As we have consistently said, consolidation could make sense in our industry, and, like any responsible company, we are always looking at value-enhancing opportunities.” It added that it was confident in its strategy. | Grubhub said in a statement: “As we have consistently said, consolidation could make sense in our industry, and, like any responsible company, we are always looking at value-enhancing opportunities.” It added that it was confident in its strategy. |
| Uber’s talks with Grubhub are taking place as deal-making, a business largely built on boardroom confidence, has slowed during the pandemic. About $831.7 billion in takeovers had been announced through Thursday, according to Refinitiv, down 39 percent from a year earlier. | Uber’s talks with Grubhub are taking place as deal-making, a business largely built on boardroom confidence, has slowed during the pandemic. About $831.7 billion in takeovers had been announced through Thursday, according to Refinitiv, down 39 percent from a year earlier. |
| Mergers advisers said many clients had hit pause on deal talks — except for transactions that make financial and strategic sense, including those done by embattled companies whose fortunes may improve by eliminating competition. | Mergers advisers said many clients had hit pause on deal talks — except for transactions that make financial and strategic sense, including those done by embattled companies whose fortunes may improve by eliminating competition. |
| Uber approached Grubhub after the pandemic hit, said one person with knowledge of the deal talks. By then, Uber’s ride-hailing business had been severely hurt as most travel was halted. Last week, the company posted a $2.9 billion loss for the first three months of the year and said that even though its revenue was up from a year earlier, its ride-hailing business had all but collapsed in March. It also announced it was laying off 14 percent of its work force. | Uber approached Grubhub after the pandemic hit, said one person with knowledge of the deal talks. By then, Uber’s ride-hailing business had been severely hurt as most travel was halted. Last week, the company posted a $2.9 billion loss for the first three months of the year and said that even though its revenue was up from a year earlier, its ride-hailing business had all but collapsed in March. It also announced it was laying off 14 percent of its work force. |
| But its Uber Eats division has been a bright spot. Revenue for the business rose 53 percent in the first quarter from a year earlier. | But its Uber Eats division has been a bright spot. Revenue for the business rose 53 percent in the first quarter from a year earlier. |
| Beyond the United States, a deal with Grubhub could help Uber compete against much larger players abroad. Uber Eats has a smaller foothold in Europe than some rivals, for example. So if price wars over delivery level out in the United States, Uber could focus on spending more to gain more international market share, two of the people said. | Beyond the United States, a deal with Grubhub could help Uber compete against much larger players abroad. Uber Eats has a smaller foothold in Europe than some rivals, for example. So if price wars over delivery level out in the United States, Uber could focus on spending more to gain more international market share, two of the people said. |
| Dara Khosrowshahi, Uber’s chief executive, has told investors that he will exit markets where Uber Eats is not the biggest or second-biggest service. Last week, he shut down Uber’s food delivery business in Egypt and Uruguay, where it was not dominant. He has also recently expanded Uber’s delivery offerings by dabbling in package and prescription medication delivery. | Dara Khosrowshahi, Uber’s chief executive, has told investors that he will exit markets where Uber Eats is not the biggest or second-biggest service. Last week, he shut down Uber’s food delivery business in Egypt and Uruguay, where it was not dominant. He has also recently expanded Uber’s delivery offerings by dabbling in package and prescription medication delivery. |
| Updated June 2, 2020 | |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said. | More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said. |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| In a call with investors last week, Mr. Khosrowshahi spoke about the virtues of getting bigger in food delivery. “There is a bunch of consolidation happening on a global basis where bigger players can not only provide better service for restaurants and consumers, but can provide a better service kind of on an economic basis that is sustainable,” he said. | In a call with investors last week, Mr. Khosrowshahi spoke about the virtues of getting bigger in food delivery. “There is a bunch of consolidation happening on a global basis where bigger players can not only provide better service for restaurants and consumers, but can provide a better service kind of on an economic basis that is sustainable,” he said. |
| Grubhub, founded in 2004, pioneered a model of collecting the menus and information for tens of thousands of restaurants and making them available to diners through its website and apps. It generates revenue by taking a cut of each meal order. But while Grubhub took customers’ orders, restaurants provided their own delivery drivers to fulfill those orders. | Grubhub, founded in 2004, pioneered a model of collecting the menus and information for tens of thousands of restaurants and making them available to diners through its website and apps. It generates revenue by taking a cut of each meal order. But while Grubhub took customers’ orders, restaurants provided their own delivery drivers to fulfill those orders. |
| That model changed in recent years with the rise of Uber Eats and DoorDash, which provided their own couriers. Grubhub, which went public in 2014, has since had to spend more to compete with those new rivals. While it was once consistently profitable, it reported a loss of $33.4 million in its most recent quarter. | That model changed in recent years with the rise of Uber Eats and DoorDash, which provided their own couriers. Grubhub, which went public in 2014, has since had to spend more to compete with those new rivals. While it was once consistently profitable, it reported a loss of $33.4 million in its most recent quarter. |
| Demand for Grubhub’s services has increased during the coronavirus outbreak, the company said in an earnings report last week. The average amount spent per order rose to $40 from $32 a year earlier. | Demand for Grubhub’s services has increased during the coronavirus outbreak, the company said in an earnings report last week. The average amount spent per order rose to $40 from $32 a year earlier. |
| But analysts said Grubhub was forced to pour most of what its earned back into the business to fend off competitors. | But analysts said Grubhub was forced to pour most of what its earned back into the business to fend off competitors. |
| “Grubhub faces an increasingly uphill battle in the world of logistics giants like Uber and Amazon,” said James Cakmak, an analyst at Clockwise Capital. “An exit like this is a best-case scenario.” | “Grubhub faces an increasingly uphill battle in the world of logistics giants like Uber and Amazon,” said James Cakmak, an analyst at Clockwise Capital. “An exit like this is a best-case scenario.” |
| Michael J. de la Merced and Jason Karaian contributed reporting from London. | Michael J. de la Merced and Jason Karaian contributed reporting from London. |