Daily Crunch: Uber might lose out on acquiring Grubhub

Uber stocks tumble after reports that it will lose out on acquiring Grubhub, Reddit appoints a new board member and Republican senators question the legal protections of large social media platforms.

Here’s your Daily Crunch for June 10, 2020.

1. Uber shares tumble 5% as reports indicate it will lose Grubhub deal to European rival

Reports this morning indicate that Uber, the American ride-hailing giant with a global footprint, will lose out on its attempt to buy Grubhub, an American food ordering and delivery service.

Instead, Grubhub might be acquired by European-rival Just Eat Takeaway. The Wall Street Journal broke the difficult news for Uber. The company’s shares are off nearly 5% today after the news, while Lyft, its local rival in ride-hailing, is off a more modest 2.5%.

2. Reddit names YC’s Michael Seibel to board, following co-founder Alexis Ohanian’s exit

In his resignation letter, co-founder Alexis Ohanian asked Reddit to replace his role with a black board member. Today, the site announced the appointment of Y Combinator CEO Michael Seibel to its board. Seibel became YC’s first black partner in 2014, before ascending to chief executive.

3. Republican senators ask FCC to examine Section 230, following Trump order

A recent executive order from the Trump administration seeks to strip away key protections under Section 230 of the Communications Decency Act. Yesterday, four Republican senators sent an open letter to the FCC, urging chairman Ajit Pai to examine the “special status” afforded to social media sites under the statute.

4. NS8 raises $123M led by Lightspeed for its suite of online fraud prevention tools

NS8 is a Las Vegas-based startup that provides tools to prevent fraud within e-commerce marketplaces, online merchants, payments gateways and ticketing services.

5. What to consider before publishing your diversity memo

Over the past few weeks, several venture capital firms have published different variations of the same pledge: we’ll do a better job supporting the Black community. My colleague Natasha Mascarenhas argues that there’s no need to applaud firms for taking long overdue steps to treat others equally. What is more important is how we’re going to hold these firms accountable going forward, after a history of inaction. (Extra Crunch membership required.)

6. Nikola Motor to open pre-orders for fuel cell pickup truck to compete with Ford, Tesla

Nikola Motor Company, the Arizona startup that made its debut as a publicly traded company June 4, will open reservations later this month for a hydrogen fuel cell electric pickup truck that was designed to compete with the Ford F-150.

7. IBM Cloud suffers prolonged outage

The IBM Cloud suffered a major outage yesterday. And with that, multiple services that are hosted on the platform are also down, including everybody’s favorite tech news aggregator, Techmeme.

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