Uber + GrubHub?
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 13 May 2020
⏱️ 18 minutes
🧾️ Download transcript
Summary
Uber is interesting in buying GrubHub, but how much are they willing to pay? Jason Moser analyzes the pros and cons of Uber cornering the food delivery market. Plus, we discuss the latest woes from The Container Store and dip into the Fool Mailbag.
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Transcript
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| 0:00.0 | This episode of Market Foolery is brought to you by Molecule. |
| 0:02.5 | Molecule is reimagining the future of clean air, starting with the air purifier. |
| 0:06.9 | For 10% off your first air purifier, go to Molecule.com, that's M-O-L-E-L-E dot com and use the promo code Fool 10 at checkout. |
| 0:17.0 | It's Wednesday, May 13th. |
| 0:21.0 | Welcome to market foolery. I'm Chris Hill. And someone else was supposed to be on the show today. |
| 0:27.0 | And an hour before the show, an hour before the time we're supposed to start recording that person said hey my laptop is |
| 0:35.3 | basically not working at all and I'm not going to be able to help out I said no |
| 0:40.5 | problem I put up the bat signal and Jason Moser who is in fact Batman answered so |
| 0:45.8 | Jason Moser thanks for being here a hey always a pleasure happy to help out |
| 0:49.9 | in a pinch we've got some earnings we're to dip into the full mail back. We're |
| 0:54.2 | going to start with a story that actually broke yesterday afternoon after you and I |
| 1:01.4 | had finished recording yesterday's market Fullery and that is Uber making a bid for Grub Hub and shares of Grub Hub ended on Tuesday up nearly 30%. It's down a little bit today, but these conversations are |
| 1:16.5 | ongoing. Before we get into the particulars, what was your reaction when you saw that because mine was |
| 1:25.6 | there are some acquisitions that in the moment you look at them and you think to |
| 1:32.4 | yourself well that makes perfect sense. |
| 1:34.5 | For me this isn't one of them but what do you think? |
| 1:38.7 | Well I don't know if it's something I would say makes perfect sense, but I do see the connection there. |
| 1:46.0 | I mean, I certainly see why Uber would be thinking in this direction, and I think that for Grubhub, this could be maybe the best way out. |
| 1:55.7 | I don't know, I mean the economics of food delivery are really tough. |
| 1:58.8 | We've certainly seen that in Grubhub's margins and financials since it's been a publicly traded company. |
| 2:03.8 | And unfortunately, it's not a market that really rewards exclusive relationships. |
| 2:08.3 | I mean, people are just looking to get their food from point A to point B and |
... |
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