In The Booming Food Delivery Business, Mergers And Acquisitions Are On The Menu

People staying home during the pandemic are ordering more food delivery, but it isn’t clear how much the industry will flourish in the long term.

By Shelly BrisbinJuly 2, 2020 1:56 pm, , ,

Food delivery companies have flourished during the pandemic. Uber Eats’ sales have doubled in recent months. But now, that success is giving way to a flurry of mergers and acquisitions in the sector, and it isn’t clear that combinations like the possible Uber takeover of Postmates, will be good for the industry’s long-term bottom line. And the future is just as murky for restaurants and consumers experiencing rising fees.

Tech expert Omar Gallaga told Texas Standard host David Brown on Thursday that Uber and Postmates are just the latest companies to contemplate a merger. Uber tried unsuccessfully to buy Grubhub earlier this year, he said. 

What you’ll hear in this segment:

– How DoorDash is dominating the food delivery business through acquisitions

– Why restaurants in Austin are more dependent than ever on delivery companies

– Why working with smaller companies like Favor has been good for some restaurants

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