Published: Sun, September 23, 2018
Markets | By Otis Pena

Uber talks on Deliveroo merger Just Eat's shares

Uber talks on Deliveroo merger Just Eat's shares

Uber, the ride-sharing, food delivery giant, is reportedly in talks to buy Deliveroo.

London-based Deliveroo was valued at more than $2 billion after raising $98 million from private investors past year.

According to Bloomberg news agency, Uber is conducting exploratory talks with meal delivery company Deliveroo.

After closing down ride-hailing business in Southeast Asia, China, and Russia, Uber is now considering several acquisition opportunities.

For Uber, which is planning an IPO next year, the food delivery sector is a top priority.

The San Francisco based company has a presence in 30 countries and 200 cities around the world.

Founded in 2013 by Will Shu and Greg Orlowski, Deliveroo is UK's one of the most successful start-up stories.

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According to MarketBeat, the blue-chip food delivery service now has a consensus "buy" rating and an average price target of 878.24p. The negotiations abruptly ended after SoftBank concentrated on backing Uber.

Deliveroo has developed a wide delivery network of over 30,000 riders globally and 15,000 riders in the United Kingdom itself who carry delicious meals from restaurants to customers' doors.

Following the rumors, share prices of rival food delivery services crashed today.

Uber's food delivery platform, Uber Eats, is reportedly the fastest growing meal delivery service in the U.S., according to data from Second Measure.

Just Eat shares fell by as much as 9 per cent at one point in London before paring some of the losses to close down 4.8 per cent at 674p.

'The combination of two competitors is the last thing Just Eat wants to hear, ' he adds.

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