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00:00:00
>> Uber is reported to be in early talks to buy London-based food delivery firm, Deliveroo. Bloomberg reporting the value of the deal isn't known and that the talks could fall apart since Deliveroo and its investors fear relinquishing independence. Neither company has confirmed or denied the report. But Reuters Eric Auchard says the merger could be a recipe for success given what's happening across the food delivery business.
00:00:24
>> The food delivery market is very much a local market. It's won city by city. The problem with these kinds of transport markets is that you need to get a lot of scale. You need to dominate local markets in order to be profitable. The whole market is converging.
00:00:41
Companies that are focused more on the high end are serving McDonalds and KFC. The companies that have been more mainstream are trying to pick up some of the higher end restaurants.>> For Uber, expanding its food delivery service also makes sense given the intense competition in its core ride hailing business.
00:01:00
>> Uber is widely considered to be gearing up for an initial public offering and it's rationalized its ride sharing business. It's investing in driverless cars. It's moving in a number of different directions. Probably the best performing additional business has been Uber Eats which has grown very rapidly, is profitable, and it also allows Uber to expand into cities where perhaps its ride hailing business is not doing so well.
00:01:29
>> Deliveroo was valued at more than $2 billion last year after raising funds from private investors. It's expanded into 11 other countries since launching in London five years ago with new markets due soon.