UberEats delivery bike box in London, U.K. Photo: Mike Kemp/In Pictures via Getty Images

Morgan Stanley and Goldman Sachs — both pitching IPO proposals to Uber — have valued UberEats, its food delivery business, at as much as $20 billion, and it's expected to become profitable before the company's ride-hailing arm, according to the Wall Street Journal.

Why it matters: On-demand delivery is a tough business in countries like the U.S., as many companies have learned in the last several years. That's largely because labor is expensive while customers don't want to pay high fees.

It's notable that Uber has reportedly been able to build UberEats, which in May had a $6 billion annual run rate, into such a massively valued unit.

  • One reason could be that it has global operations, including in regions where it can have different fee and pay structures. Two years ago, this is exactly what the CEO of Rappi, a Latin American delivery startup, explained to me about emerging markets.
  • The reported valuation is about twice the current market cap of GrubHub, a U.S.-based food delivery company that mostly aggregates restaurants that offer their own delivery — and why CEO Matt Maloney has said the company's business is working.

Uber declined to comment.

Go deeper

Trump commutes Roger Stone's sentence

Roger Stone arriving at his sentencing hearing on Feb. 20. Photo: Drew Angerer/Getty Images

President Trump on Friday evening commuted the sentence of his longtime associate Roger Stone, according to two senior administration officials. Stone in February was sentenced to 40 months in prison for crimes including obstruction, witness tampering and making false statements to Congress.

Why it matters: The controversial move brings an abrupt end to the possibility of Stone spending time behind bars. He had been scheduled to report to prison on July 14.

Updated 10 hours ago - Health

Which states have set single-day coronavirus records this week

Data: COVID Tracking Project and state health department data compiled by Axios; Map: Danielle Alberti and Naema Ahmed/Axios

13 states this week surpassed records set just last week for their highest number of coronavirus infections in a single day, according to the COVID Tracking Project and state health department data. 16 states in total reported new highs.

The big picture: The United States' alarming rise in coronavirus cases isn't just due to increased testing — particularly where the number of cases has grown fastest over the last month, Axios' Andrew Witherspoon and Caitlin Owens report.

Updated 10 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 6:30 p.m. ET: 12,389,660 — Total deaths: 557,279 — Total recoveries — 6,830,596Map.
  2. U.S.: Total confirmed cases as of 6:30 p.m. ET: 3,169,611 — Total deaths: 133,885 — Total recoveries: 983,185 — Total tested: 38,856,341Map.
  3. Public health: The reality of the coronavirus bites.
  4. Trade: Trump says he's no longer considering phase-two trade deal with China because the pandemic damaged the two countries' relationship.
  5. 🎧 Podcast: Rural America has its own coronavirus problem.