Page 29 - bon-dia-aruba-20200612

A29
BUSINESS Friday 12 June 2020
Just Eat swallows Grubhub creating restaurant delivery giant

By DEE-ANN DURBIN ers and reported revenue
AP Business Writer of $1.3 billion.
Two pioneers in restaurant The coronavirus pandemic
delivery — Just Eat Take- has boosted sales for both
away.com and Grubhub Just Eat Takeaway.com
— are combining in a $7.3 and Grubhub, with res-
billion deal that will create taurants shuttered, more
one of the world's largest people staying home and
delivery companies. ordering takeout food.
Amsterdam-based Just Eat Grubhub's orders grew 28%
Takeaway.com said late over the prior year in April
Wednesday that it was and May, while Just Eat
acquiring Chicago-based Takeaway.com's orders
Grubhub, snatching it grew 41%.
away from ride-hailing gi- Just Eat Takeaway.com
ant Uber, which had been provides deliveries in Eu-
reportedly seeking to team rope, Australia, Israel, New
Grubhub with its Uber Eats Zealand, Canada, Mexico
business. and Brazil. q
The deal is expected to This Feb. 20, 2018, file photo shows the Grubhub app on an iPhone in Chicago.
close in the first quarter of Associated Press
2021. The combined com-
pany will be headquar- ed in buying Grubhub, board and will lead the stable sales. Aggressive dis-
tered in Amsterdam, with its it would have given the company's North American counting and heavy mar-
U.S. headquarters in Chica- companies control over business, the companies keting costs to win new us-
go. Just Eat Takeaway.com a majority of the U.S. food said. The merger will let the ers have also taken a toll
and Grubhub processed delivery business, but could companies share technol- on profits, and restaurants
593 million restaurant orders have run into snags with ogy and marketing costs have been pushing for low-
in 2019 and have about regulators. Just Eat Take- and provide the broadest er fees.
70 million users worldwide. away.com doesn't operate range of services to restau- As a result, consolidation
Combined, they will be the in the U.S. rants and consumers, the has been a constant in
largest restaurant delivery "Like ridesharing, the food companies said. the industry. Grubhub ac-
company outside China. delivery industry will need Takeaway.com and Grub- quired Seamless in 2013,
Just Eat Takeaway.com consolidation in order to hub, both founded in the while DoorDash bought the
said it will acquire 100% of reach its full potential for early 2000s, were some of upscale service Caviar last
Grubhub's shares at an im- consumers and restau- the earliest entries in the year.
plied value of $75.15 per rants. That doesn't mean sector. But they've been In January, Takeaway.com
share. Grubhub sharehold- we are interested in doing joined by a host of others, bought its British rival Just
ers will receive depository any deal, at any price, with including Uber Eats, Door- Eat for $7.8 billion. Com-
receipts representing a any player," Uber said in a Dash, Deliveroo and Post- bined, those companies
portion of shares in the new statement. mates. have 48 million active users
company. Grubhub shares Matt Maloney, Grubhub's Customers jump freely be- and reported revenue of
closed at $59.05 Wednes- founder and CEO, will join tween the services, which $1.7 billion in 2019. Grub-
day. If Uber had succeed- Just Eat Takeaway.com's makes it difficult to deliver hub has 23 million active us-

Microsoft joins Amazon, IBM in pausing face

scans for police

By MATT O’BRIEN a national law in place,
AP Technology Writer grounded in human rights,
Microsoft has become the that will govern this tech-
third big tech company nology,” Smith said.
this week to say it won’t The trio of tech giants is
sell its facial recognition stepping back from law-
software to police, follow- enforcement use of sys-
ing similar moves by Ama- tems that have faced
zon and IBM. criticism for incorrectly
Microsoft’s president and identifying people with
chief counsel, Brad Smith, darker skin. Ongoing pro- In this May 29, 2020 file photo, Brad Smith, president of
announced the decision tests following the death Microsoft, speaks during a roundtable with industry executives
and called on Congress to of George Floyd have fo- about reopening country after the coronavirus closures, in the
regulate the technology cused attention on racial State Dining Room of the White House, in Washington.
during a Washington Post injustice in the U.S. and Associated Press
video event on Thursday. how police use technol- face recognition software, nition software to any U.S.
“We’ve decided we will ogy to track people. none is a major player in police departments. He
not sell facial recogni- But while all three com- selling such technology to didn’t say if that includes
tion technology to police panies are known for their police. Smith said Thursday federal law enforcement
departments in the Unit- work in developing artifi- that Microsoft currently agencies or police forces
ed States until we have cial intelligence, including doesn’t sell its face recog- outside the U.S.q