Uber Offers Takeover Deal To Chicago-Based Grubhub: Report

CHICAGO, IL —Rideshare company Uber is reportedly in talks to buy Chicago-based food delivery service Grubhub, worth an estimated $4.5 billion, according to a report from Bloomeberg.

The two companies could reach a deal as soon as this month, a source familiar with the negotiations told Bloomberg.

Grubhub got its start in Chicago in 2004, offering online and mobile food ordering and delivery.

The Uber deal is said to be a takeover that would see Grubhub absorbed into Uber after the rideshare company announced earlier this month that it will shutter its own food delivery service, Uber Eats, in seven countries.

Uber Eats is leaving the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine by June 4.

But a month earlier, Uber announced that it was "fast tracking the expansion of our Uber Eats product into over 20 countries in 2020, beginning with national launches (April 8) in Brazil, Canada, France and the United Kingdom."

Last week, Uber Technologies also said it has been hit hard by the coronavirus pandemic.

"While our Rides business has been hit hard by the ongoing pandemic, we have taken quick action to preserve the strength of our balance sheet, focus additional resources on Uber Eats, and prepare us for any recovery scenario," CEO Dara Khosrowshahi said in a message to investors. "Along with the surge in food delivery, we are encouraged by the early signs we are seeing in markets that are beginning to open back up. Our global footprint and highly variable cost structure remain an important advantage, as our expectation is that the Rides recovery will vary by city and country."