Uber has reached a deal to acquire food delivery rival Postmates

Uber has reached a deal to acquire food delivery rival Postmates in an all-stock purchase worth $2.65 billion, marking a major milestone in the long-awaited consolidation of the US food delivery sector. The deal comes after Uber failed in its bid to take over Grubhub last month. The Chicago- based company was instead scooped up by Europe’s Just Eat Takeaway for $7.3 billion. San Francisco-based Postmates, which has about 1,000 employees, was valued at $2.4 billion in its last funding round in September 2019 and has raised about $900 million from private investors… The deal followed on-and-off merger discussions between the large US food delivery companies over the past year as pressure mounted to consolidate the industry and rein in lossmaking operations. Considered the fourth-largest player in the US market, Postmates will provide Uber with a bigger presence in key markets such as Los Angeles, Miami and Phoenix — but will do little to boost its competitiveness against leader DoorDash in cities such as New York, Chicago and San Francisco… Postmates will also boost Uber’s efforts to expand its delivery capabilities into more groceries and other small goods beyond prepared meals. Uber is in the process of finalising its majority ownership of Cornershop, a leading grocery delivery provider across Latin America. Cornershop has also recently expanded into Miami and Dallas. 

Dave Lee and Miles Kruppa