Ride hailing app Uber has acquired US delivery service Postmates for a total $2.65 billion as the group aims to bolster its food delivery business Uber Eats.
According to TechCrunch, Uber confirmed the deal is an all-stock deal. The company plans to keep the app separate but integrate its technological operations into Uber Eats.
CEO Dara Khosrowshahi said in a statement:
“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. 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.”
Uber and Postmates had been in negotiations last week already.
Postmates has good relationships with restaurants and Uber hopes to tap into and expand on these connections.
Uber Eats has been a success story for Uber and posted a growth of 52% in revenues during its last quarterly earnings. Monthly active consumers rose 140% in the second quarter of 2019. This has helped offset revenue declines from Uber’s ride hailing business due to social distancing issues.