Uber reportedly agrees to Get Postmates for about $ 2.65 billion

Uber has agreed to purchase Postmates within an all-stock price worth $2. 65 billion. In accordance with Bloomberg, the deal may be announced on Monday morning.

Like other traveling – and transportation-related companies, Uber’s ride-hailing segment has been negatively impacted from the COVID-19 outbreak, as a result of shelter-in-place orders throughout the United States. On-demand shipping, however, has increased, with people relying on services like Uber Eats to get meals without leaving their homes. In accordance with its last earnings report, Uber’s ride-hailing gross bookings fell, but its food delivery service saw gross earnings growth of 54% during its first financial quarter.

Based on past reports, Uber made an offer to buy Grubhub, another on-demand shipping support, before this season, but then deal fell through, it approached Postmates. Bloomberg reports that Uber and Postmates have really talked on and off for about four years, but discussions became more intense in a week ago.

Grubhub ended up being acquired by Simply Eat Takeway in a deal worth $7.3 billion after its discussions with Uber stalled.

Using its past venture valuation of $2.4 billion in September 2019, Postmates is a much smaller firm than Grubhub. The business confidentially filed to go public in February 2019, but decided to hold off because of “choppy market” states . There was just one report as late as last week claiming that Postmates will be putting in a people IPO filing this week with a goal evaluation of $3.9 billion — potentially a narrative seeded in an attempt to elevate the evaluation in the middle of negotiations.

If the deal goes through, the main competitors in the American food delivery marketplace would be Uber Eats/Postmates versus Grubhub/Takeaway versus DoorDash.

In different nations, companies like Grab have also started building out their on-demand delivery solutions to make up for reductions from fewer ride-hailing bookings. For example, Grab reacted to stay-at-home orders in Indonesia (its principal market) along with other Southeast Asian countries by re-deploying ride-hailing drivers to on-demand deliveries for food and essential items.

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