Elaborating.... don't short it yet. $42 ish new support. Jenny Craig.... Not following ya on that one.
I have a long-time friend in the food delivery service business in 3 US markets: LA, Las Vegas, and S.FL. Business is excellent! I follow this industry and my buds business regularly. It plays directly into the experiential economy, where people prefer the couch unless/until something special. His business offers delivery for EAT24(Yelp), GrubHub, phone orders, and other regional online ordering platforms. The benefits are multiple to the restauranteur... No hiring, payroll, insurance, etc. Plus, the ability to deal with (and negotiate) one set of drivers and one point of contact for many ordering methods. UberEats has solid customer awareness, as will/does Amazon food services. Ubereats fees to the restaurant are 30%+ of the ticket. Amazon will be around 28%+. UberEats and Amazon WILL NOT ALLOW (for now??) restaurant to provide their own delivery, hence their fees mean cash-flow-only to the restaurant. In essence no profit. This is unsustainable. Grubhub has structure to ala-carte it's services... the ordering platform, delivery drivers, promotions etc. Eat24 is ala-carte similar, but does not have the option to provide the actual delivery drivers. Eat24 is pickup only, unless delivery is supplied by the restaurant. There is an uprising forming by restaurants against the excessive fees of UberEats and soon to be Amazon. This is likely to prevent takeovers by UberEats and Amazon, unless they are fully prepared to relinquish the end-point delivery, thereby offering an ordering platform only. I live in Vegas. I happen to know UberEats spent 5million to launch here. Since then, they have lost many locations (due to the fees), and their drivers (passenger and/or food) are not making money either. Amazon is yet to launch food delivery here. Eat24 and Grub are the biggest services for most restaurants, UberEats is the biggest according to hourly restaurant workers and customers.
Id also like to point out, Yelp, and Grub, are potential acquirers. Look at whats happening.... Jack in the Box has contracted with DoorDash for delivery. Postmates has major presence in almost every major market. Panera is hiring 10K delivery drivers, inhouse. Point is, There are a lot of players. Lots of experimenting. Fees charged by the newest are unsustainable in the current iteration.
I don't trade stock so I can't say. If there was a gun to my head to pick up or down, I would choose down. As mentioned, there is a lot experimentation going on, and there are a lot of players. There is a revolt by restaurants brewing, taking the form of wallets as a weapon. GRUB and EAT24 were first to market, and are top tier in the industry. It is interesting times in that biz.