Uber Buys Postmates, Plans to Incorporate it Into Uber Eats
Following rumors surrounding a possible Grubhub-Uber deal.
Uber has purchased Postmates, a food and grocery delivery app, for $2.65 billion USD. According to a report by Jul 8, 2020, the deal is a move to expand Uber’s food delivery options via Uber Eats as its ride-hailing business flails amidst the coronavirus pandemic.
Uber will incorporate Postmates into Uber Eats, revenue from which has risen 53 percent from April to June. Through this integration, customers will be able to choose from a wider range of restaurants and merchants. The Postmates app will continue to operate separately under its own name.
A press release issued by Uber on July 6 includes a statement from CEO Dara Khosrowshahi explaining the acquisition. “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,” he said, adding that “Q2 bookings on Uber Eats are up more than 100 percent year on year.”
