Democrats call for investigation into Uber-Grubhub deal

A group of Democratic senators on Wednesday urged antitrust regulators to monitor Uber’s potential acquisition of GrubHub and to launch an investigation if any deal goes through.

Multiple outlets reported last week that Uber, which operates Uber Eats, is in discussion to acquire GrubHub in a deal that would consolidate two of the biggest players in the meal delivery business.

“A merger of Uber Eats and Grubhub would combine two of the three largest food delivery application providers and raise serious competition issues in many markets around the country,” the lawmakers wrote in a letter to Assistant Attorney General Makan Delrahim and Federal Trade Commission Chairman Joseph Simons.

Sens. Amy Klobuchar (D-Minn.), the ranking member of the Judiciary subcommittee on antitrust issues, Patrick Leahy (D-Vt.), Richard Blumenthal (D-Ct.) and Cory Booker (D-N.J.) called on the regulators to launch an investigation if a deal is met “to ensure that competition is preserved.”

The letter cites work from research firm Second Firm reviewing the food delivery market in April.

The analysis found DoorDash as the national food delivery leader, earning 45 percent of meal delivery sales last month.

GrubHub, at 23 percent, and Uber Eats, at 22 percent, were not far behind.

“The merger under negotiation would create a sector in which the top two players control 90 percent of sales,” the lawmakers wrote.