&l;p&g;&l;img class=&q;dam-image ap size-large wp-image-e3af2f0260044989b7300416e129eefa&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/e3af2f0260044989b7300416e129eefa/960×0.jpg?fit=scale&q; data-height=&q;611&q; data-width=&q;960&q;&g; (AP Photo/Mark Lennihan)
Last August, Toyota invested in Uber at a $76 billion valuation. Then Goldman Sachs and Morgan Stanley independently offered to take Uber public at a valuation as high as $120 billion. According to Morningstar, the increase was justified in part by valuing Uber Eats at $20 billion.
Its expansion to 36 countries and 200,000 restaurants might justify that, except that &l;b&g;Grubhub&l;/b&g;, a profitable company with 16.4 million customers and 95,000 restaurants, is valued at just $7.3 billion. For a pure play in meal delivery, steer clear of what will undoubtedly be a hyped-up Uber IPO and go with Grubhub.
&l;i&g;Ken Kam is founder and CEO of &l;a href=&q;https://www.marketocracy.com/&q; target=&q;_blank&q;&g;Marketocracy&l;/a&g;. &l;/i&g;&l;/p&g;