Capital Calls: Uber wants a slice of Just Eat's bratwurst - Reuters

Sausages are pictured at the Erchinger's slaughterhouse in Berlin, Germany, July 10, 2020. Erchinger works with regional farmers and their products are all free of additives. REUTERS/Hannibal Hanschke

Concise insights on global finance in the Covid-19 era.

------------------------------------------------

GULP! Uber Technologies (UBER.N) is trying to grab a slice of Just Eat Takeaway.com’s (TKWY.AS) lunch. According to the Financial Times, the $103 billion technology group is unleashing its food delivery unit in Germany, one of its rival’s most lucrative markets. Just Eat Takeaway.com shares fell more than 4% on Wednesday morning.

Last year, Germany accounted for 374 million euros of sales , or 16% of the combined revenue of the group, which was created a year ago from the merger of Just Eat and Takeaway.com. More importantly, it is profitable, generating 125 million euros in adjusted EBITDA in a market where others have struggled. Rival Deliveroo (ROO.L) raised the white flag in 2019 and exited. Uber’s incursion, however, may be well timed as boss Jitse Groen focuses his efforts on cracking the United Kingdom and the United States. Trying to fend off a deep-pocketed competitor in another major market might be enough to spoil his dinner. (By Karen Kwok)

On Twitter http://twitter.com/breakingviews

Earlier in Capital Calls:

Carrefour’s French win may close valuation gap read more

Toshiba CVC snub damps bid hopes read more

Bank of America hops the racial wealth gap read more

WeWork’s crypto dreams read more

Kering struggles to close bling gap read more

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

Let's block ads! (Why?)

Capital Calls: Uber wants a slice of Just Eat's bratwurst - Reuters
Read More