“A merger of Uber Eats and Grubhub would combine two of the three largest food delivery application providers and raise serious competition issues in many markets around the country,” the letter said.
Especially as many restaurants’ dining rooms have been closed during the coronavirus pandemic, many consumers look to delivery and pickup services like Postmates, Uber Eats, DoorDash and Grubhub for their daily meals. A recent survey by DoorDash in March found that 56% of 1,000 customers said their takeout consumption has increased because of the pandemic.
“As our country grapples with the many health and safety challenges brought about by the coronavirus (COVID-19) pandemic, many consumers have turned to food delivery apps to order meals online, and many restaurants have come to rely on the business they get through these apps to stay afloat,” said the senators’ letter.
Uber has fallen into a tough financial situation amid the pandemic, pushing the ride-hailing company to cut 25% of its staff and close or consolidate about 45 offices worldwide.
Grubhub is likely to merge with Netherlands-based Just Eat Takeaway.com and German Delivery Hero instead, according to CNBC.
Uber and Grubhub didn’t immediately respond to a request for comment.
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