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US Senator Klobuchar Slams Uber and Grubhub’s Agreement

American Senator Amy Klobuchar slams both Uber and Grubhub earlier this week for their combination deal. The US senator said that any deal between the two will be bad for the competition and even consumers.

Earlier this month, it was reported that the ride-hailing company and the online food delivery firm are discussing a merge.

The technology companies’ agreement is an all-stock combination which will give Uber Eats an upper hand in the market. The deal will help it compete with DoorDash, one of the leading delivery services in the United States right now.

It also comes at a crucial time as the pandemic hits the ride-sharing company’s business thanks to the paralyzed transportation system.

The Democrat senator tweeted that if the two companies combined their forces, it won’t be good. According to Klobuchar, it corners the market and it would mean less for people but more for them.

The Senator from Minnesota is a senior member of the US Senate’s antitrust committee – which oversees competition enforcement in the country.

Technology news reports say that Klobuchar’s tweets call for antitrust watchdogs to immediately act. This is before Uber and Grubhub join forces to take control of the majority of the US food delivery market.

Both of the companies have not yet responded or commented about the tweet.

According to antitrust experts, any agreement between the two would still likely get approved by regulators.

Last week, the ride-hailing giant closed a $900 million bond offering, the first since September last year. The proceeds will reportedly go to the company’s working capital and acquisitions.

Massive Lay Off

Uber, a hard-struck company during the pandemic, is reportedly laying off about 3,000 workers in cost-cutting efforts. The news about the layoff came from an email from CEO Dara Khosrowshashi to the company’s employees.

Through modern technology, the company has managed to climb its way to the top. But now, it’s feeling the crippling effects of the stay-at-home lockdowns.

The company is also seeing a drop of about 80% in its ride-hailing businesses because of the pandemic.

The dramatic move comes just less than two weeks after the company laid off 3,7000 employees, that’s 14% of its global workforce. All in all, Uber has now laid off about a quarter of its staff in just less than a month.

Aside from that, the company is also closing around 45 offices around the world as it tries to minimize expenses. Khosrowshashi said that the firm is reshuffling its divisions and will focus on its core.



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