Uber (UBER) raised $8.1 billion in additional cash through its IPO this month. A richer Uber could spell trouble for Yelp’s (YELP) ambitions. Yelp has an interest in the restaurant food delivery market in the United States. It has an arrangement with restaurant food delivery provider GrubHub, where it makes money when its users make a purchase with GrubHub’s restaurant partners.
…With a larger war chest, Uber could be more incentivized to mount a stronger competitive challenge against market leader GrubHub in America’s food delivery scene, potentially slowing its growth or taking its market share. And Yelp would have something to lose if GrubHub cannot compete effectively or defend its market share. Yelp said in its latest investor letter that its operating results may be adversely affected if it fails to realize the benefits that it expects from its arrangement with GrubHub.