GrubHub, a mobile food ordering and delivery platform, has announced that the company will partner with Lyft, a mobile rideshare app, to take advantage of the thriving food delivery business. Since COVID-19 shocked the market in mid-March, GrubHub has seen its stock price rise from around $30 to $80 today, a near 167% increase in stock price.
Earlier this year, Uber $UBER failed to purchase Grubhub after the two sides settled into a stalemate. Consequently, Uber decided to purchase Postmates instead, another mobile food ordering and delivery platform. That critical move paid off for Uber, who saw a 113% increase in gross bookings for their food delivery in the second quarter. However, since early this morning, GrubHub has seen their stock price surge by over 7%. According to Yahoo Finance, Lyft $LYFT is making a big step into the food delivery business because of the immense demand that has been generated vis-a-vis COVID-19. Could the newfound partnership between Lyft and Grubhub compete with the established partnership between Uber and Postmates? Will COVID-19 persist long enough for us to see the clash between two giant coalitions dominating the rideshare/food delivery business? That much will become clear in the following weeks.
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