Uber has reportedly agreed to purchase Postmates in an all-stock deal value $2.65 billion. According to Bloomberg, the deal could also be introduced on Monday morning.
Like different travel- and transportation-related companies, Uber’s ride-hailing section has been negatively impacted by the COVID-19 pandemic, attributable to shelter-in-place orders all through the United States. On-demand supply, nevertheless, has grown, with folks counting on companies like Uber Eats to get meals with out leaving their houses. According to its final earnings report, Uber’s ride-hailing gross bookings dropped, however its meals supply service noticed product sales development of 54% throughout its first fiscal quarter.
According to earlier stories, Uber made a suggestion to purchase Grubhub, one other on-demand supply service, earlier this yr, however after that deal fell by means of, it approached Postmates. Bloomberg stories that Uber and Postmates have truly talked on and off for about 4 years, however negotiations grew to become extra intense a couple of week in the past.
Grubhub ended up being acquired by Just Eat Takeway in a deal value $7.three billion after its negotiations with Uber stalled.
Just Eat Takeaway confirms it’s gobbling up Grubhub in a $7.3B deal
With a valuation of $2.four billion, Postmates is a smaller firm than Grubhub. The firm filed to go public in February 2019, however determined to carry off due to “uneven market” situations.
If the deal goes by means of, the primary opponents within the American meals supply market can be Uber Eats/Postmates versus Grubhub/Takeaway versus DoorDash.
In different nations, corporations like Grab have additionally begun constructing out their on-demand supply companies to make up for losses from fewer ride-hailing bookings. For instance, Grab responded to stay-at-home orders in Indonesia (its important market) and different Southeast Asian nations by re-deploying ride-hailing drivers to on-demand deliveries for meals and important gadgets.
How Grab tailored after COVID-19 hit its ride-hailing enterprise