GrubHub denies sale plan, shares fall
Grubhub is denying reports that the company is looking into a sale.
Shareholders of the food delivery company have been taken on a rollercoaster ride over the past couple of days following a report.
Shares plummeted more than 8 percent in late Thursday trading following the denial.
That countered Wednesday's jump of 12 percent, to $54.75 a share, on a Wall Street Journal report that said Grubhub has tapped advisers to help it review its strategic options, including a sale.
“While our policy is not to comment on rumors, given the considerable media speculation that appeared yesterday, we felt it was important to clarify that there is unequivocally no process in place to sell the company and there are currently no plans to do so,” a GrubHub spokesperson said.
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“We have always consulted advisors about a broad range of issues, including potential acquisition opportunities — that has not changed,” the spokesperson added.
The New York Post reported later on Wednesday that GrubHub had been exploring a sale for months without any takers.
Grubhub, founded in 2004, was a pioneer in the sector. But since then, it's been joined by Uber Eats, DoorDash, Postmates and others.
As of November, DoorDash claimed 37 percent of the U.S. delivery market, while Grubhub held 30 percent, according to Second Measure, a data analysis company. Uber Eats had 20 percent share.
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The services are fighting over a limited number of customers, for now. Delivery represents only about 3 percent of all restaurant orders, according to NPD Group, a market research firm. But that's expected to grow by double digits this year.
The Associated Press contributed to this article.
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