American food delivery firm Grubhub is reportedly exploring strategic options, including a possible sale.
The Wall Street Journal reported that it has hired financial advisers to explore the options that may include a potential sale or even an acquisition.
According to the report, Grubhub has also discussed strategies to ward off activists.
However, the review is claimed to be in the initial stages and may not lead to any strategic actions.
The company has been under pressure from competitors such as Uber Eats, DoorDash and Postmates in the food-delivery industry.
Currently, its market valuation stands at approximately $4.5bn. A year ago, its market value was over $13bn.
GrubHub chief executive Matt Maloney was quoted by Wall Street Journal as saying last October that the industry is ‘in a weird bubble that is about to burst’, particularly as private investors have become sceptical of startup valuations following WeWork’s cancelled IPO.
Grubhub is a US online and mobile food ordering and delivery service.
The company’s online and mobile ordering platforms provide diners to order from over 140,000 takeout restaurants in over 2,700 US cities and London.
The Grubhub portfolio of brands comprises Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.