It’s Not Delivery, It’s Diminished Competition: Can Uber Really Buy Grubhub?

By Alex Petros (Public Knowledge)

The COVID-19 pandemic has taken so much from so many, so we’ve got to find bits of joy where we can. For me, quarantined with my mother in Lexington, KY, that has become weekend food delivery. To be sure, my mother is an incredible cook and I am a middling (though improving) one and we have some delicious weekday meals. But they’re most of the healthy, low-carb variety. That is, until the weekend splurge, part of which is the door-to-door service.

We’re not alone. Food delivery is having its moment during the COVID-19 pandemic. Despite the upsurge in use, industry consolidation appears to be on the horizon. The latest is Uber’s reported bid for Grubhub. The antitrust questions it raises mean the deal deserves special scrutiny during this time.

This is especially important because while food delivery is a weekend perk for me, it is a lifeline for others. For the elderly and immunocompromised, food delivery might be among the safest ways they can get food. And unlike almost every other sector of the economy, food delivery has seen a massive uptick in the pandemic. In many areas of the country, restaurants have been forced to close their dining rooms, so takeout and delivery are the only ways they can remain open and retain at least some of their employees.

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