Uber Acquires Postmates for $2.65 Billion in All-Stock Deal
Uber purchases Postmates for $2.65 billion in an all-stock transaction following its failed attempt to buy Grubhub. The company plans to operate the Postmates app independently while merging backend delivery logistics.
Uber acquires Postmates in a $2.65 billion all-stock deal to expand its footprint in the competitive food delivery market. The ride-hailing giant plans to run the Postmates app alongside its existing Uber Eats platform while merging backend technology and delivery operations. This consolidation allows drivers to fulfill orders for both services simultaneously, increasing overall efficiency.
This acquisition follows Uber's failed attempt to purchase Grubhub, which Europe's Just Eat Takeaway ultimately acquired for $7.3 billion. The demand for delivery services surges during the COVID-19 pandemic, with Uber Eats reporting a more than 100 percent year-over-year increase in second-quarter bookings. Both companies emphasize that their combined platforms extend beyond food to power broader local commerce and community services.
Uber describes Postmates as highly complementary to its own business due to differing geographic strengths and target demographics. Postmates brings strong relationships with small and medium-sized restaurants alongside a loyal customer base that relies on the brand for delivering various everyday items. The leaders of both companies express enthusiasm about combining their resources to build better technology and improve experiences for consumers, couriers, and merchants.