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Why spend $4.5 billion to buy a company instead of spending $4.5 billion on your own to be competitive? The only answer is that Uber is attempting to monopoliz
by christopherwxyz 6y ago
Why spend $4.5 billion to buy a company instead of spending $4.5 billion on your own to be competitive?
The only answer is that Uber is attempting to monopolize the food delivery market.
- bpicolo 6y agoSelling to restaurants to convince them to onboard to your platform is a slow, expensive process that's neither easy nor guaranteed. GrubHub has acquired many other companies (e.g. Eat24) in the past purely for the relationships/business.
- dehrmann 6y agoThis. While Uber might also want to be a monopoly in this space, growing market share is a lot harder than buying it.
- nkohari 6y agoThe actual answer is that with acquisition, you're also eliminating a competitor in addition to gaining their share of the market.
- whoisjuan 6y agoWhy spend $4.5 billion to be competitive when you can instead buy a company that already did what you want to do?