Uber announced recently that it acquired California-based delivery technology company, Postmates for in a $2.65 billion, all-stock deal.
Both Postmates and Uber Eats will continue to run post the acquisition. However, by means of this acquisition, Uber intends to merge some of the technology and delivery options at the back end, for instance, getting drivers deliver orders for both businesses. This also means that the customers would have access to a greater variety of restaurant options and more efficient deliveries as drivers will be able to pick multiple orders at once.
While the boards of directors of both the companies have approved of the deal, it is still subject to regulatory approval and is expected to be finalised in the first quarter of 2021.
Earlier this year, Uber’s attempt to acquire GrubHub, another food delivery company, fell apart. It was, subsequently, bought by the European service Just Eat Takeaway for $7.3 billion.
“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,” said Uber CEO Dara Khosrowshahi.
What is Postmates?
Launched in 2011 and co-founded by Bastian Lehmann, Sean Plaice, and Sam Street, Postmates revolutionized food delivery and delivery of goods in the United States.
According to its website, its mission is to “enable anyone to have anything delivered on demand.”
“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,” said Postmates Co-Founder and CEO Bastian Lehmann.
Will this deal help Uber, whose ride-hailing business has drastically reduced due to the coronavirus pandemic, become profitable? Let us know your views in the comments section below.