Postmates Prepares to Go Public Amid Fierce Food Delivery Competition
Postmates plans to release its IPO paperwork in September, aiming for a stock market debut by the end of the third quarter. The delivery company moves forward with its public offering despite ongoing industry consolidation and fierce competition from Uber and DoorDash.
Postmates prepares to release its public IPO paperwork in September, setting the stage for a stock market debut by the end of the third quarter of 2019. The San Francisco-based on-demand delivery company taps JP Morgan Chase and Bank of America Corp. as lead underwriters for the highly anticipated offering. Although the exact size and price range of the float remain unannounced, this move confirms the company's commitment to going public rather than pursuing a sale.
This public offering push comes after Postmates engages in unsuccessful merger talks with rival DoorDash earlier in the year. While Postmates currently holds a $1.85 billion valuation following $681 million in total raised capital, the competitive landscape shifts dramatically as DoorDash reaches a $12.6 billion valuation and acquires Caviar from Square for $410 million. The food delivery market continues to consolidate rapidly as major players fight for dominance.
As Postmates enters the public markets, it faces immense competition from established powerhouses like Uber and Grubhub. Uber recently reports disappointing second-quarter earnings overall, but its UberEats division shows impressive growth with $3.39 billion in gross bookings and a 140 percent increase in monthly active platform consumers. Postmates must prove its standalone market viability to investors as it battles these heavily funded giants in a fiercely competitive on-demand delivery space.