Uber to acquire Postmates for $2.65 billion

Uber has agreed to acquire delivery service Postmates in a $2.65 billion all-stock deal. The ride-hailing company on Monday said the acquisition, which was reported earlier by Bloomberg, will boost its growing efforts in the delivery of groceries, essentials and other goods.  

“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,” Uber CEO Dara Khosrowshahi said in a press release, adding that bookings on Uber Eats were up more than 100% during the second quarter. 

With many restaurants’ dining rooms closed during the coronavirus pandemic, people have looked to delivery and pickup services like Postmates, Uber Eats, DoorDash and Grubhub for their meals. A survey by DoorDash in March found that 56% of 1,000 customers said their takeout consumption had increased because of the pandemic.

Uber was said to be looking to acquire rival food-delivery service GrubHub, but reportedly exited merger talks amid antitrust concerns. Grubhub now plans to merge with the Netherlands-based food delivery service Just Eat Takeaway in a deal worth $7.3 billion.

Earlier this year, Uber cut jobs and shut down side projects to focus on its rides and delivery businesses. It also made management changes, promoting Andrew Macdonald, who was head of global rides, to lead “mobility,” and Pierre-Dimitri Gore-Coty, who was head of Uber Eats, to lead “delivery.” In April, the company also introduced two new delivery options, Uber Direct and Uber Connect. 

Uber’s takeover of Postmates is expected to close in the first quarter of 2021.

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