Uber is acquiring food delivery service Postmates as it seeks to bolster UberEats after missing out on GrubHub.
The deal, which is expected to close by the start of 2021, will see Uber purchase Postmates for $2.65 billion in stock.
Bastian Lehmann, Co-Founder and CEO of Postmates, said:
“Over the past eight years we have been focused on a single mission: enable anyone to have anything delivered to them on-demand. Joining forces with Uber will continue that mission as we continue to build Postmates while creating an even stronger platform that brings this mission to life for our customers.
Uber and Postmates have been strong allies working together to advocate and create the best practices across our industry, especially for our couriers. Together we can ensure that as our industry continues to grow, it will do so for the benefit of everyone in the communities we serve.”
Uber was rumoured to be on the lookout for a food delivery company after JustEat swooped in to buy GrubHub for $7.3 billion in another all-stock deal.
Dara Khosrowshah, CEO of Uber, commented:
“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.
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.”
The talks between Uber and GrubHub broke down after the firms could not agree on a break-up fee and what the ride-hailing company perceived as stalling tactics.
Uber’s deal with Postmates, announced today, will likely receive less regulatory scrutiny than a deal with GrubHub would have.