Ever since businesses across the globe shut down in mid-March, companies that focus on “last-mile” logistics and delivery have seen an increase not only in public notoriety but also in sales on Wall Street.
Demand for these services has increased since they bear the risk of going outside to buy and deliver essentials like food and drinks. Especially since many of these companies have implemented no-contact delivery options, people have increasingly flocked to them for services that just a few months ago before stay at home orders were put in place, everyone could do themselves.
According to a report from the Wall Street Journal, Uber Technologies Inc (the company behind the wildly popular rideshare and food delivery apps Uber and UberEats respectively) is in talks to acquire competitor GrubHub Inc. for roughly 6 billion USD. Although the deal has not yet closed, further details are still being kept under wraps.
Business mogul and expert in supply chain technology, Benjamin Gordon, was keen to keep up with news, reporting it on his public Twitter account on May 12. Gordon is the CEO of Cambridge Capital, a West Palm Beach-based private equity investor in transportation, logistics, and supply chain technology businesses. He is also the Editor-in-Chief of SUPPLY CHAINS, Cambridge’s publication that focuses on trends and opportunities resulting from both old-economy transportation and new-economy technology.
Additionally, Gordon founded BG Strategic Advisors (BGSA), a West Palm Beach-based investment banking firm for the supply chain sector. Clearly, Benjamin Gordon has a good grasp on the market, especially when it comes to companies that are involved in supply chains like Uber Technologies Inc and GrubHub Inc.
Interestingly enough, current Massachusetts senator and former 2020 democratic presidential candidate Elizabeth Warren also tweeted about this possible merger on her public Twitter account. It’s interesting to consider how this merger might affect the US economy as a whole.
Seeing that other people are also tweeting about this issue also gives it more credibility and importance to this issue as a whole. Regardless of whether or not you yourself support this possible merger, the consequences of this potential deal are enormous. Both Uber and Grubhub already have firm grips on the food delivery service market.
A merger would mean a drastic decrease in the overall competition in the market, and as long as we are in this recession and lockdown, this could cause unintended consequences throughout the food delivery sector.
Only time will tell where this deal will go. It’s quite possible that other companies may become involved in either this deal or similar deals. But of course, that’s why it’s important to keep up to date with the latest trends and advice from business experts like Benjamin Gordon.
Not only will following well-respected figures like Gordon help you sort through the barrage of information in the midst of crisis, it will also help you build your knowledge base so that you too can understand what is going on during this confusing time.
It’s best to stay up to date and aware of the latest market occurrences. Also, US-based students can apply for the Benjamin Gordon Palm Beach Scholarship