Uber to buy food-delivery service Postmates in $2.65 billion all-stock deal Description video: CNBC’s Deidre Bosa reports on Uber’s acquisition of food-delivery service Postmates. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi\n \n» Subscribe […]
Uber to buy food-delivery service Postmates in $2.65 billion all-stock deal
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Uber acquires food delivery company Postmates for $ 2.65 billion
Uber Technologies Inc has agreed to purchase Postmates food delivery service. The deal will amount to $ 2.65 billion, Bloomberg News reports..
The acquisition was approved by Uber’s board of directors. Expected that Pierre-Dimitri Gore-Koti, The head of Uber Eats will manage the combined delivery service business. At the same time, Postmates will remain a separate application..
Reuters reported last week that Postmates resumed its IPO plans following a deal in the U.S. food delivery sector, prompting market interest to acquire the company..
Postmates was last valued at $ 2.4 billion when it raised $ 225 million in a fundraising round last September.
Founded in 2011 in San Francisco, Postmates held 8% of the U.S. food delivery market in May, according to analyst firm Second Measure..
Uber also planned to acquire Grubhub Inc, but the other side turned down the deal. Grubhub ultimately acquired Takeaway.com in June. The amount of the agreement was $ 7.3 billion.
Uber is betting on food delivery to bolster its business during the coronavirus pandemic as taxi demand collapses due to self-isolation regime. In his first quarter earnings statement the corporation reported that gross revenue from the travel segment in April fell 80% from a year earlier, while revenue from food delivery rose more than 50% over the same period.
Postmates was highly successful in specific areas of Los Angeles and Miami, but felt keenly national competition from DoorDash, GrubHub and Uber.. Even with Postmates, Uber will still have a hard time pushing DoorDash out of its position as the delivery market leader. However, it is this could affect the positive decision of the regulator, which, as experts believed, would not approve the Uber-GrubHub deal precisely because of the potential violation of healthy competition.
Uber shares on preliminary bidding in monday grow by almost 9%.