Uber To Officially Buy Postmates In $2.65 Billion-Dollar Deal

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#Roommates, if you always dreamed that your favorite ride-share and food delivery apps would merge together—well, you’re in luck. It has just been announced that Uber is officially set to buy Postmates in a multi-billion deal, which is said to be one of the largest in the industry.

@CNN reports, Uber has officially committed to buy Postmates in a $2.65 billion all-stock deal and calling Postmates “highly complementary” to Uber Eats, its in-house meal delivery service. If you’re wondering when you can expect Uber and Postmates to come together, the deal is said to close in the first quarter of 2021. Uber recently stated that it is “committed to provide bridge financing to Postmates” as it waits for the deal to become finalized. You may remember that just last month, Uber tried unsuccessfully to buy Grubhub after negotiations fell through.

In a statement released this week, Uber CEO 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.”

She continued, adding:

“We’ve always admired Postmates, I guess, begrudgingly from afar in that it was a competitor who was able to compete aggressively and to be a leader in some very important markets with a much smaller capital base than a lot of its competition, including ourselves.”

 However, industry experts say that Uber faces an uphill battle in the food delivery space despite acquiring Postmates. Uber is entering an incredibly crowded market that could make it harder and more costly to gain ground—including propelling its in-house service Uber Eats.

 

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