Uber to buy Postmates for $2.65bn
By Michele Maatouk
Date: Monday 06 Jul 2020
(Sharecast News) - Uber Technologies confirmed on Monday that it has agreed to buy food delivery start-up Postmates for around $2.65bn in all-share deal.
The acquisition brings together Uber's global Rides and Eats platform with Postmates' "distinctive" delivery business in the US, the company said.
For restaurants and merchants, Postmates and Uber Eats will together offer more tools and technology to more easily and cost-effectively connect with a bigger consumer base. In addition, consumers will benefit from more choice across a wider range of restaurants and other merchants.
Uber chief executive officer Dara Khosrowshahi said: "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% year-on-year."
The deal has been approved by the boards of directors of both companies and shareholders representing a majority of Postmates' outstanding shares have committed to support it.
The transaction is expected to close in the first quarter of next year.
At 1335 BST, Uber shares were up 9.2% in pre-market trade at $33.49.
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