U.S. Senator Amy Klobuchar. Photo credit: Gage Skidmore on Flickr, under Creative Commons license

United States Senator Amy Klobuchar has castigated a possible tie-up of Uber and Grubhub, which was recently reported to be in the works. Uber has been reported to be aiming to acquire Grubhub, one of its biggest food delivery competitors, and Senator Klobuchar is apparently opposed to such a deal. In a tweet, she propounded that Uber acquiring Grubhub “isn’t good for competition and it isn’t good for you.” Klobuchar apparently perceives an Uber-Grubhub tie-up as an antitrust case and stated that she’s challenging “antitrust enforcers to do something about it.” Klobuchar herself is notably a senior member of the U.S. Senate’s antitrust committee, which governs competition enforcement.

If Uber takes over Grubhub it isn’t good for competition and it isn’t good for you. When big companies corner the market it usually means more for them and less for you, especially in a pandemic. That’s why I’m challenging the Trump antitrust enforcers to do something about it.

— Amy Klobuchar (@amyklobuchar) May 17, 2020

Thanks for Uber/Grubhub Q Dana. Why I care? Antitrust enforcement is about saving free market so people can compete. This is a pandemic-driven $6 bil deal to take out major competitor of UberEats& allow Uber to control more than 1/2 the ? delivery market. Monopolies = ↗️ prices! https://t.co/3WvzlQa7QA

— Amy Klobuchar (@amyklobuchar) May 17, 2020

Uber is said to have recently approached Grubhub with a takeover deal to help bolster its own money-losing food delivery business. Both companies already each control a significant share of the U.S. food delivery market and given that, Uber acquiring Grubhub will result in the ride-hailing company possibly becoming the number one leader in the U.S. food delivery market, above the likes of DoorDash and Postmates. According to data from Second Measure, Uber and Grubhub respectively control 20% and 28% of the U.S. food delivery market. A theoretical tie-up between both would add up that number to 48%, compared to current market leader DoorDash’s 42%. On the heels of reports of Uber looking to acquire Grubhub, the company, already flush with some $9 billion in cash, initiated a $900 million bond offering, very much hinting at a possible big acquisition in the works.

With Klobuchar’s opposition, it seems that Uber may encounter some regulatory snags in trying to takeover Grubhub. Klobuchar alone can’t block a proposed Grubhub acquisition but with enough support from other members of U.S. Senate’s antitrust committee, such an acquisition could be overturned. What’s currently unclear is if Klobuchar will be able to convince regulators to block the deal. As she has already said, she’s challenging “antitrust enforcers to do something about it.”