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<\/div>\nUber Technologies is buying Postmates Inc., the food-delivery app, in an all-stock deal worth $2.6 billion, Bloomberg<\/a> reported.<\/p>\n The ridesharing company’s board of directors has approved the acquisition and announced the deal early Monday (July 6).<\/p>\n Vice President of Uber Eats Pierre-Dimitri Gore-Coty will continue to run the combined delivery business, sources told Bloomberg. Postmates CEO Bastian Lehmann will reportedly remain to run Postmates as a separate service.<\/p>\n Second Measure<\/a><\/strong> Inc., the San Mateo, California company that collects data on more than 4,500 public and private companies, has revealed Postmates had about 10 percent of food-delivery sales last year, followed by Uber Eats with 20 percent of sales, Grubhub Inc. accounted for 32 percent while DoorDash Inc. led the market with 33 percent, CNBC<\/a> reported.<\/p>\n The merger is expected to allow the combined companies to go head-to-head with DoorDash, the San Francisco-based on-demand prepared food delivery service founded by four Stanford students in 2013.<\/p>\n Postmates was founded by Lehmann, Sam Street and Sean Plaice in 2011 and says it has grown to include 600,000 merchants nationwide.<\/p>\n Uber and Postmates have yet to turn a profit. Uber lost $2.9 billion in the first quarter because of the COVID-19 crisis.<\/p>\n Food delivery companies, which rely on non-full-time gig workers, are hard to tell apart from a consumer perspective other than pricing, Engadget.com reported<\/a>.<\/p>\n As a result, mergers and acquisitions are pursued to control costs and pricing which could work against restaurants, users and workers the online news service reported.<\/p>\n “As a part-time courier who works for both [Postmates and Uber Eats] this is bad news,” wrote journalist and gig worker Wilfred Chan on Twitter<\/a>. “While both are staunch anti-worker companies, fewer and bigger players means even less worker leverage against platform capitalists. With dwindling options, we’ll be exploited even more harshly.”<\/p>\n By joining forces and cutting costs, the companies could make the food delivery service profitable.<\/p>\n Last week, Postmates revived plans for an initial public offering. Postmates has raised more than $900 million to go public.<\/p>\n The deal comes one month after the ridesharing company tried to acquire GrubHub<\/a>. But the Netherlands-based Just Eat Takeaway made the deal for $7.3 billion.<\/p>\n Representatives for Uber and Postmates declined to comment.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Tags:<\/b> Pymnts<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"See Campaign: <\/strong>https:\/\/www.pymnts.com\/news\/partnerships-acquisitions\/2020\/uber-seeking-purchase-of-food-delivery-startup-postmates\/<\/a>
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Uber Technologies is buying Postmates Inc., the food-delivery app, in an all-stock deal worth $2.6 billion, Bloomberg reported. The ridesharing company’s board of directors has approved the acquisition and announced the deal early Monday (July 6). Vice President of Uber Eats Pierre-Dimitri Gore-Coty will continue to run the combined delivery business, sources told Bloomberg. Postmates CEO Bastian … Continue reading Uber To Buy Postmates For $2.6B In Stock<\/span><\/a> Continue Reading