Uber, Postmates agree on $2.65 billion all-stock deal

Marco Green
July 6, 2020

Postmates pioneered food delivery in 2011, but is a distant fourth in the U.S. market to DoorDash, GrubHub and Uber's own Eats services.

The all-stock takeover is expected to be announced as early as Monday morning in the U.S., according to Bloomberg, which cited unnamed sources familiar with the matter.

The deal has been approved by Uber's board and could be announced as soon as Monday, Bloomberg reported, adding that Pierre-Dimitri Gore-Coty, head of Uber's food delivery business, Uber Eats, is expected to continue to run the combined delivery business. Postmates chief executive Bastian Lehmann will stay on to manage Postmates as a separate service, it was reported.

If the deal goes through, the main competitors in the American food delivery market would be Uber Eats/Postmates versus Grubhub/Takeaway versus DoorDash. Together, however, Uber Eats and Postmates will be second in the market after DoorDash, which still holds a large lead.

The move for Postmates comes on the heels of Uber's failed bid to acquire publicly traded GrubHub Inc., which was scooped up by Europe's Just Eat Takeaway.com NV for $7.3 billion.

Uber closed at $30.68 on Friday, after it had gone up more than 4% 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.

Postmates was last valued at $2.4 billion, when it raised $225 million in a private fundraising round last September.

Other reports by Click Lancashire

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