3 ms·
GrubHub, a direct publicly traded competitor, is profitable and has a market cap of 11.6B (and is growing tremendously). Considering that Uber Eats already has
by probe 8y ago
GrubHub, a direct publicly traded competitor, is profitable and has a market cap of 11.6B (and is growing tremendously). Considering that Uber Eats already has a gross sales run rate larger than GrubHub, I do imagine it's a pretty good bet. There are also a lot of horizontal synergies between the business models.
- valuearb 8y agoThat's a very good counter argument, but the real question is whether Uber Eats is profitable or close to being profitable. If it is, you are right and I'm totally wrong and they should kill every side project (including probably driverless car technologies) and keep Eats and Ride Sharing. If Uber Eats isn't close to profitability it means they are far behind GrubHub despite their advantage of their massive synergy, and have little hope to catch up (in profitability, even if Uber Eats can give away enough services to outgrow Grubhub in revenues that would be a pyrrhic victory).