Uber Just Bought Postmates for $2.65 Billion
The move comes after an attempt to buy Grubhub.
Less than a month after Uber's failure to feast on food delivery giant Grubhub, the ride hailing and services company has set its sights elsewhere. This time, on Postmates.
Uber, which already runs its own delivery app, Uber Eats, has bought out its competitor Postmates for $2.65 billion in an all-stock deal. The two won't, however, function as one. Uber Eats and Postmates will remain separate entities, offering more restaurant options for customers and increased efficiency for drivers, The Verge reports. The deal is slated to close by the first quarter of 2021.
"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 statement Monday. "As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100 percent 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."
With a massive decrease in Uber riders as a result of the COVID-19 pandemic, the company has looked to its food delivery division as a solution. While ride-hailing is down a whopping 80%, Uber Eats sales are looking better than ever, the company announced in May.
But according to The Verge, that isn't quite enough to topple DoorDash. The leader ate up 45% of food deliveries in the month of June, market research firm Edison Trends found. This latest acquisition is an attempt to top that board. By adding Postmates to its portfolio, its market share goes from 29% to 37%.
h/t The Verge