Grubhub denies reports of sale, shares drop

Grubhub Inc said on Thursday there is no sale process, denying reports that the online food delivery company was considering strategic options that include a possible sale or an acquisition, sending its shares down 6.7% in extended trading.

"We felt it was important to clarify that there is unequivocally no process in place to sell the company and there are currently no plans to do so," a Grubhub spokesperson said, in am emailed statement to Reuters.

The New York Post reported https://bit.ly/37IpXLQ earlier Thursday that executives from Walmart and at least three other grocers have considered acquiring Grubhub, while a Wall Street Journal report https://www.wsj.com/articles/grubhub-considers-strategic-options-including-possible-sale-11578505832?mod=searchresults&page=1&pos=1 said the Chicago-based company has tapped financial advisers to help with the review.

"We have always consulted advisers about a broad range of issues, including potential acquisition opportunities - that has not changed," Grubhub spokesperson added.

Competition has intensified in the food-delivery industry with Uber Technologies Inc's UberEats, which has grown into a national competitor, and startups such as DoorDash and Postmates.

(Reporting by Shanti S Nair in Bengaluru, Editing by Sherry Jacob-Phillips)