Ride-hailing software giant Uber and delivery company DoorDash discussed the possibility of a merger last year, but no deal was struck. Uber’s shares fell slightly after the news. The stock fell about 1 percent on Thursday. SoftBank urged Uber and DoorDash to discuss a possible merger, according to people familiar with the matter. Despite the breakdown of the talks, the two companies have reportedly not ruled out the idea of resuming them.
Representatives for Uber and DoorDash declined to comment.
SoftBank has invested heavily in both companies through its Vision Fund. In November, DoorDash raised a new round of financing, valuing it at nearly $13bn, while last May it raised $600m from SoftBank and other investors.
While Uber’s latest results show double-digit year-on-year revenue growth, its takeaway service, Uber Eats, has struggled to make a profit. Last week, Uber sold its food distribution business in India to rival Zomato, and last September pulled out of its Uber Eats business in South Korea.
With the market for delivery services highly competitive, Uber Eats, DoorDash, Postmates, Grubhub and others are vying for customers’ wallets. Venture capitalists have been investing in start-ups such as Postmates and DoorDash, but most have little to make. The only profitable Grubhub is reportedly exploring strategic options, including a possible sale.