GrubHub (NYSE: GRUB) is considering a possible sale of the company or an acquisition due to increased competition in the food delivery sector and decline in its shares, according to The Wall Street Journal, citing people familiar with the matter.
GrubHub has reportedly tapped financial advisers to assist with a review of potential moves that could include a sale of the company or an acquisition.
The Wall Street Journal noted that GrubHub's $4.5 billion market value "is down from its peak of more than $13 billion just over a year ago, before competition from other delivery startups heated up and ate into the company’s results."
The fast-food delivery industry has become very competitive, with rivals that include DoorDash, Postmates and Uber Technologies (NYSE: UBER) Uber Eats division.
GrubHub's stock traded higher by 17.2% to $57 per share at time of publication. The stock has a 52-week high of $149.35 and a 52-week low of $60.20