Uber buys Postmates in $2.65 billion all-stock deal
Uber said its cutting 3,700 full time employee roles as it grapples with the coronavirus pandemic and its impact on the ride-share business. (Photo Illustration by Beata Zawrzel/NurPhoto via Getty Images)
SAN FRANCISCO (AP) - Uber finally got its food delivery company, acquiring Postmates in a $2.65 billion all-stock deal, the ride-hailing giant confirmed Monday.
Uber and its Uber Eats food-delivery division will gain ground against DoorDash, which controls about 37% of the U.S. food delivery market. That’s compared with Uber Eats’ 20% share before the Postmates deal. Grubhub holds around 30% of the U.S. food delivery market.
Last month, Uber lost out in a bid for Grubhub, which would have made it the dominant U.S. food-delivery service. But Amsterdam-based Just Eat Takeaway.com ended up nabbing Chicago’s Grubhub in a $7.3 billion deal. Uber was reportedly seeking to team Grubhub with its Uber Eats business.
The food delivery sector is undergoing a major consolidation this year and more is expected. The number of people using food delivery services is on the rise because of the coronavirus pandemic, but customers tend to jump around from service to service depending on where they can find the best deal.
Uber and Postmates are both based in San Francisco.