Uber Buys Routematch, Transit System Software Firm

Uber made another acquisition: Routematch, which provides software for more than 500 transit systems worldwide.
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Uber Technologies  (UBER) - Get Report said it bought Routematch, a software company that serves a variety of needs for more than 500 transit systems worldwide.

Terms weren't disclosed. 

Routematch, Atlanta, says it focuses on accessibility and inclusivity for transit agencies and their riders.

"This acquisition brings together Uber's expertise in on-demand, global mobility technologies with Routematch's proven capabilities across paratransit, payments, fixed-route tools, and trip-planning services," Uber Transit head David Reich and Routematch President Pepper Harward said in a statement.

"Both companies believe it will create new innovations that make it easier for agencies to provide the right transportation solutions to their riders, through an expanded suite of technologies."

Last week, Uber agreed to acquire food-delivery service Postmates for $2.65 billion in stock.

Postmates sits behind market-leading DoorDash but still commands a near 10% slice of the U.S. food-delivery market. Postmates has strong positions in Los Angeles and the southwestern U.S.

The deal fits into Uber's diversification strategy, with ride traffic falling amid the coronavirus pandemic. It softens the blow to Uber of losing out to Just Eat Takeaway in last month's $7.3 billion battle for Grubhub  (GRUB) - Get Report.

“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,” said Uber Chief Executive Dara Khosrowshahi.

Uber shares at last check traded at $32.23, down 1.8%. The stock has climbed 8% year to date. And it has more than doubled off its 52-week low below $14, set in mid-March.