The Strategist

Uber to buy Postmates food delivery service for $ 2.65B

07/07/2020 - 03:50

Uber Technologies, a taxi and food delivery service, announced purchase of a $ 2.65 billion-worth Postmates food delivery service. It will issue 84 million new shares that will be exchanged for 100% of Postmates shares.

Elvert Barnes via flickr
Elvert Barnes via flickr
Boards of directors of both companies approved the deal. The takeover of Postmates was supported by shareholders holding the majority of the shares of the service.

The deal must now be approved by the remaining Postmates shareholders and regulators. Its closure is scheduled for the first quarter of 2021.

Postmates is the fourth largest food delivery service in the US after DoorDash, GrubHub and Uber Eats.

Uber previously planned to buy GrubHub, but the companies could not agree on a price. In early June, GrubHub was acquired by the Dutch Just Eat Takeaway NV.

According to CNBC, Uber now relies on food delivery due to falling demand for travel. In May, the company announced that its business in the taxi order segment in April fell by 80% in annual terms, while revenue from food delivery grew by more than 50%.