Uber attempts to eat the competition with proposed Grubhub acquisition

June 08, 2020 | Case Study

A major confluence of emerging digital capabilities and gig economy business models spurred innovative companies that helped commoditize access to consumer goods and services. While transportation network companies quickly dominated the on-demand transportation market, digital ordering and food delivery platforms leveraged similar technology to expand access to meal delivery. While Uber recognized the opportunity to leverage its network and infrastructure to compete in both markets, undiversified food delivery players have struggled to compete in an increasingly competitive market with high operating costs. Now, Uber is in talks to acquire meal delivery competitor Grubhub to expand the ride-hailing giant's already-successful Uber Eats division.