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

Ruben Fields
July 6, 2020

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

Uber Technologies has agreed to acquire Postmates in a $2.65 billion all-stock takeover expected to be announced as soon as Monday morning in the USA, according to people familiar with the matter. Postmates' strongholds in the American southwest and Los Angeles are believed to be of value to Uber Eats.

The takeover would help Uber gain ground against privately-held DoorDash, the current market leader in U.S. food delivery. Grubhub holds around 30% of the US food delivery market, according to Second Measure, a data analysis company. "We look at groceries as a category, there's a lot of hot food being delivered, we look at essentials as a category that we are going to go after as well". Uber was reportedly seeking to team Grubhub with its Uber Eats business.

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Last month, Uber lost out to the European food-delivery service Just Eat Takeaway in a deal to buy the US-based Grubhub for $US7.3 billion.

Uber, under pressure as its core ride-hailing business reels from lockdowns across the globe, offered a premium of about 10 percent on Postmates' last valuation of $2.4 billion (roughly Rs. 17,890 crores). Uber's rides business slid 3% in the first quarter and dropped 80% in April compared with the same time previous year.

The pandemic has pushed Uber even further away from profitability. Uber's board of directors has approved the deal, a person said, though the plans could still be subject to change.

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