Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Eniola Odetunde/Axios

Democratic politicians are coming out in strong opposition to a merger that doesn't yet exist.

Driving the news: Sen. Amy Klobuchar (D-Minn.) tweeted Sunday: "If Uber takes over Grubhub it isn’t good for competition and it isn’t good for you." That followed an even more bombastic statement from Rep. David Cicilline (D-R.I.), chair of the House Judiciary's antitrust subcommittee, who called the possible deal "a new low in pandemic profiteering."

The state of play: The two sides hadn't agreed on price as of yesterday, per multiple sources, let alone the dozen or so other items that would have to be subsequently decided.

  • Grubhub rejected a reported offer of 1.9 Uber shares per Grubhub share.
  • Uber stock soared upon initial reports of a possible deal ⁠— at one point adding creating around $5.2 billion in extra value. Grubhub's calculation is that markets typically discount deal rumors by around 20%, which means Uber's offer was too low.

What dealmakers aren’t discussing is the Democratic opposition.

  • One source close to the deal hadn’t even seen the Klobuchar tweet when I rang yesterday afternoon ("Can you read it to me?").
  • Uber never offered to buy Lyft because of antitrust concerns, but that would have been consolidating two major players into one. In this case, Uber-Grubhub would barely have more market share than DoorDash.
  • Congress can make lots of noise, but it can’t actually sue to block a merger. That’s up to an Executive Branch department like the DOJ or FTC. As one source familiar with Uber texted me: “Might as well take a shot on goal while Trump is still in office.”
  • Cicilline could hold hearings into the merger, but Klobuchar would need buy-in from Sen. Mike Lee (R-Utah), who chairs the Senate Judiciary Committee’s antitrust subcommittee.

But, again, there is no deal yet to oppose (or support), which means it's more about political posturing than policymaking. It's also remarkable to hear the sound and fury over Uber/Grubhub, and not a political peep over Facebook's agreement to buy Giphy.

  • Deal or no deal, most everyone agrees that the prices for meal delivery must rise, as Uber Eats, Grubhub, Doordash, and Postmates are all unprofitable.
  • There is a legit debate over who should bear those increased costs – as many restaurants argue they already are being charged past their margin breaking point – but consolidation alone won’t be the reason for higher fees.
  • Unprofitability could work its way into an antitrust defense, kind of like what Amazon used in the U.K. to defend its investment in struggling food delivery company Deliveroo.

Go deeper: Antitrust clouds darken over emboldened tech giants

Update: An earlier version of this story misstated the reported price that Grubhub rejected.

Go deeper

Uber, Lyft win delay on court order forcing driver reclassification

Photo: Ali Balikci/Anadolu Agency/Getty Images

An appeals court in California granted Uber and Lyft a stay on an injunction that would have forced the companies to reclassify drivers as employees Friday morning.

Why it matters: The stay came just 12 hours before the companies planned to suspend their ride-hailing services across California rather than comply with the injunction. They're now free to continue with business as usual while the appeal process plays out.

The fight over turning gig workers into gig employees

Illustration: Eniola Odetunde/Axios

The gig economy model powering a number of key tech giants threatens to break down in California, in a battle that may spill out across the country over whether gig workers should be considered employees.

Why it matters: Treating gig companies' workers as employees would guarantee them benefits and other rights they don't necessarily get as independent contractors. But the prospect presents an existential threat to the firms' business models.

Stalemate over filibuster freezes Congress

Illustration: Sarah Grillo/Axios

Senate Majority Leader Chuck Schumer and Mitch McConnell's inability to quickly strike a deal on a power-sharing agreement in the new 50-50 Congress is slowing down everything from the confirmation of President Biden's nominees to Donald Trump's impeachment trial.

Why it matters: Whatever final stance Schumer takes on the stalemate, which largely comes down to Democrats wanting to use the legislative filibuster as leverage over Republicans, will be a signal of the level of hardball we should expect Democrats to play with Republicans in the new Senate.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!