Uber Poised to Buy Deliveroo to Augment Mobile Payments and Food Delivery
Food delivery is rapidly gaining ground on its way to becoming the next big industry. Why not? This combination of mobile payments-friendly technology that allows you get food most any time you’re hungry without having to bother with putting on pants is no doubt appealing to most anybody at one point or another. A new deal between Deliveroo and Uber is poised to help drive further use of mobile food delivery and give Uber a chance to really capitalize on a growing market.
The current word says that Uber is in the last stages of talks to acquire Deliveroo, and given that Deliveroo was recently valued at over $2 billion, it could be a major new push. Since Deliveroo is based in the UK, the impact on the rest of the world might be comparatively mild, but we’ve seen Uber make pushes in the food delivery sector before.
Word from Bloomberg, meanwhile, suggests that if Uber is planning to acquired Deliveroo, it’s going to have to pull out all the stops on the offer. There’s word that Deliveroo absolutely will not go under its valuation, and previous reports have put both Deliveroo and investors as very much prizing their independence. Uber will basically have to stun Deliveroo with wads of cash to get it to the bargaining table.
Picking up Deliveroo, however, might be a game-changer for Uber. Deliveroo is said to be the leading delivery firm for food in Europe, and elements of it can be found in over 200 cities. That’s a big presence, and one that Uber is likely drawn by.
Uber could use a big success. Its image has been badly battered from the last few scandals, and with reports emerging that drivers aren’t getting paid with any kind of rapidity, it’s one more brick in the wall of troubles for Uber. Though the issue with getting paid has been fixed, according to recent reports, it’s still a perception problem that Uber definitely did not need right now.
If Uber can pick up Deliveroo, which has a clear market already built-in and operating, it may be able to address its short-term image—and possibly cash-flow—problems and pick up some of its losses. Either way, Uber could use a win, and quick.