Uber Acquires Food Delivery Service Postmates for $2.65 Billion in Stock

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Uber is acquiring food delivery service Postmates for $2.65 billion in stock. The ride-hailing app is hoping to diversify its offerings, especially as demand has lessened during the coronavirus pandemic.

“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," said Uber CEO Dara Khosrowshahi in a statement Monday.

Revenue at Uber Eats rose 53% from last year as customers turned to food delivery during lockdowns.

Postmates lags behind competitor DoorDash and Grubhub, but still commands nearly 10% of the U.S. food delivery market.

"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. We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country,” Khosrowshahi said.

In June, Uber  (UBER) - Get Report lost out in a bid for Grubhub, which holds about 30% of the U.S. food delivery market, because of antitrust concerns. Grubhub combined with Just Eat, a food-delivery specialist based in the Netherlands.

Uber rose 4.11% to $31.94 in trading Monday morning.

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