Grubhub may put itself up for sale with competition in the online delivery business growing increasingly intense.
Shares jumped almost 13% after The Wall Street Journal first reported late Wednesday that the company is exploring its options. Shares before the opening bell Thursday are rising.
Grubhub Inc. said it would not comment on speculation.
The Chicago company was a pioneer in the sector, but it’s since been joined by Uber Eats, DoorDash and Postmates. The companies are finding that customers jump freely between services to find the best deal, making it more difficult to deliver stable sales numbers.
In October GrubHub slashed its full-year revenue expectations and cautioned on competition, sending its shares tumbling 43%. In a letter to shareholders at the time, the company noted the trend in which its customers switch services depending on what’s being offered, saying that they have become “more promiscuous.”
The reported developments at Grubhub sent shares of rival Uber Inc. up more than 1% before the opening bell Thursday.
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