Uber to acquire Postmates in $2.65B deal

Uber to acquire Postmates in $2.65B deal

Uber Technologies Inc said on Monday it would buy Postmates Inc in a $2.65 billion deal, looking to expand its reach into the food-delivery market as the coronavirus crisis upends its core ride-hailing business. According to The Times, Uber is expected to merge Postmates with its popular homegrown food-delivery app Uber Eats.

Postmates was founded by Bastian Lehmann, Sam Street, and Sean Plaice in 2011 and says it has grown to include 600,000 merchants across all 50 states.

Founded in 2011, San Francisco-based Postmates accounted for 8% of the US meal delivery market in May, according to analytics firm Second Measure. Postmates' strongholds in the American southwest and Los Angeles are believed to be of value to Uber Eats.

Uber and Postmates had held discussions on and off for about four years but the talks accelerated about a week ago after Uber approached the latter firm, one of the people said.

Uber's move for Postmates comes shortly after it missed out on a deal for GrubHub, which was snapped up by Britain's Just Eat in a £5.75 billion deal.

Uber closed at $30.68 on Friday, after it had gone up more than 4 percent on initial reports of its bid for Postmates.

Postmates was largely viewed as one of the pioneers of app-based food delivery in the U.S. but increased competition has seen it slip down the pecking order. The company's biggest rival, Doordash, raised $400 million from private investors at a valuation of $16 billion in June.

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