Uber announces Postmates acquisition

Uber is to acquire food delivery rival Postmates in a $2.65 billion, all-stock deal. 

It plans to run the business alongside its Uber Eats venture, keeping the Postmates app running, “supported by a more efficient, combined merchant and delivery network.” 

The deal sprung up in the wake of Uber failing to acquire another competitor, Grubhub, which was instead bought by Just Eat Takeaway for $7.3 billion. It should help Uber gain ground against DoorDash, the current market leader in the US food delivery market. Postmates is currently the fourth largest player in the country.

“Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery; they can be a hugely important part of local commerce and communities, all the more important during crises like Covid-19,” says Uber CEO Dara Khosrowshahi.

“As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100% year-on-year. We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country.”

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