Uber confirms $2.65 billion it’s shopping for Postmates in stock

Uber nowadays confirmed it’s shopping for on-demand delivery company Postmates in an all-stock deal valued at $2.65 billion. The announcement follows every week of intense speculation, with Bloomberg news earlier this morning that the deal was done, although neither company had seasoned the claims heretofore.

Uber says it’ll leverage Postmates to spice up its own burgeoning food delivery business, Uber Eats, additionally as its broader “delivery-as-a-service” push. Uber aforementioned that when the acquisition closes, the consumer-facing Postmates app is going to be maintained as a standalone entity, although merchants and customers can get pleasure from a combined delivery network.

Uber is not an alien to strategic acquisitions, having recently paid $3.1 billion for geographical region ride-hailing rival Careem and purchased a dominant stake in Latin American grocery delivery startup Cornershop. At the identical time, Uber has divested variety of its native businesses to seasoned rivals in jap Europe, China, and Southeast Asia.

 No IPO

Postmates had been a heatedly anticipated commercialism candidate for 2020 and filed its work confidentially with the Securities and Exchange Commission (SEC) last year. The San Francisco-based company shelved those plans thanks to a lukewarm response from investors however was reportedly getting ready to revive its commercialism hopes as early as in the week, which can have spurred Uber’s acquisition.

Founded in 2011, Postmates emerged in a concert of the most players within the on-demand food delivery sphere, providing restaurants and different eateries quick access to a smartphone-based delivery network. though the platform is maybe the best proverbial for delivering food, it is often accustomed to the traveler as regards any item between a merchandiser and vendee. this can be kind of like the approach Uber_campony has evolved, reappropriating the supply infrastructure from its taxi-like transportation services for Uber_grub, that the corporate declared nowadays has full-fledged a 100 percent year-on-year increase in bookings throughout Q2 2020. a number of months back, Uber additionally undraped a replacement service known as Uber Connect, which repositions its platform as a traveler service that permits individuals to move nearly any item.

Although Postmates, in brief, explored international enlargement with a North American country launch back in 2017, the platform is currently completely out there to U.S. consumers, creating this acquisition a strictly domestic play for Uber. Indeed, Uber has been operating to consolidate its position within the U.S. food delivery marketplace for a while, having reportedly mulled a merger with Postmates’ rival DoorDash last year. (Instead, DoorDash confidentially filed for AN commercialism earlier this year before raising another $400 million and putting an issue mark over the timeline of its plans to travel public.) Uber additionally pursued food delivery juggernaut Grubhub, which was eventually snapped up by European rival simply dine in a $7.3 billion deal a month past.

After Uber did not acquire each market leader DoorDash and Grubhub, Postmates was a logical next target. in keeping with client information analytics firm Second live, Postmates had V-day of the U.S. food delivery market in could, behind Uber grub (22%), GrubHub (23%), and DoorDash (45%). supported that information, Uber can currently be the clear second-biggest player within the ferociously competitive domestic food delivery market.

Uber aforementioned it’ll issue around eighty-four million shares of common shares for 100 percent possession in Postmates.

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