Is Uber about to buy Deliveroo?
Uber, the ride-sharing, food delivery giant, is reportedly in talks to buy Deliveroo. The report comes from Bloomberg, and suggests that Uber has set its sights on acquiring its £1.5 billion rival, Deliveroo.
The two firms have been jostling for first place in the food delivery market since 2014, thanks to the inception of Uber Eats. Its arrival posed a significant threat to Deliveroo, which was hailed as the food delivery service du jour. The market is far from dominated, however, with platforms such as Just Eat, DoorDash and GrubHub cashing in on people’s penchant for restaurant food at home.
UberEats, meanwhile, remains just a subsidiary of its parent platform, with Uber itself most well-known for its ridesharing services and flexible, if precarious, offer of work. Deliveroo, on the other hand, focuses solely on food delivery and distribution, although this is no mean feat; the London-based service operates in four continents and over 200 cities worldwide, from Australia to the United Arab Emirates. Deliveroo’s presence is particularly high in the UK, where it operates in around 100 towns.
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Meanwhile, reports of the potential deal are wreaking havoc in the food delivery market, with news that shares of London-listed Just Eat have already dropped over 5%.
If Uber is successful in this latest venture, it could saturate the food delivery market in Europe. It won’t, however, give up without a fight. Deliveroo has legions of loyal fans – company uniforms even sell for substantial markups on the streetwear scene. Our prediction? Uber’s going to have to surrender a lot more than £1.5 billion to snap its rival up.
We’ll be updating this story as when more information about Uber’s potential acquisition of Deliveroo is released, so be sure to check back in.
Lead image: Jon Crel, used under Creative Commons