As requirement for expedited delivery, take-out dining and other food delivery service choices has been soar amid the coronavirus pandemic, Uber has announced its own $2. 65 billion plan to acquire Postmates.
After a failed attempt last 9, to acquire Grubhub, the popular service will send on a deal with a different high quality food delivery service program.
“Uber Technologies, Inc. and Postmates Inc. today announced that they have reached a definitive agreement under which Uber will obtain Postmates for about $2. 65 billion within an all-stock transaction,” the company said at a press release Monday.
This all-stock deal will give customers more restaurant and merchant options from Uber and Postmates Eats, and it helps both companies streamline delivery.
Uber hailed as Postmates as a”highly complementary” support for its model and brand which will now combine Uber’s journey and eats platform using Postmates’ delivery business.
“Uber and Postmates have long shared a belief that platforms such as ours can power considerably more than simply food delivery — that they can be a hugely significant part local communities and commerce, all the more significant during crises like COVID-19,” Uber CEO Dara Khosrowshahi stated in a statement.
Uber’s geographic-based system that hones in on consumer demographics will soon be bolstered by Postmates'”powerful relationships with little – and medium-sized restaurants, particularly local favorites that draw customers to the Postmates brand,” the announcement added.
“Additionally, Postmates has become an early pioneer of’delivery-as-a-service,’ which matches Uber’s growing efforts in the delivery of markets, essentials, and other goods,” the announcement continued.
Postmates co-founder and CEO Bastian Lehmann added that within the last eight years, their company has worked to enable”anybody to have anything delivered to them on-demand.”
Uber estimated it will issue”approximately 84 million shares of common stock for 100percent of the fully diluted equity of Postmates.”
Both companies’ boards of directors approved the trade and Postmates’ bulk stockholders supported the trade. Pending the approval of Postmates stockholders and closing conditions, the agreement is expected to close in the first quarter of 2021.
Uber has had a rough ride during the pandemic. In May, the company faced backlash over the decision to cut more than 6,000 jobs because of a 80% decrease in demand for its core service reported in an April earning report.
While the ride-sharing service has seen a decrease in transport demand throughout the COVID-19 outbreak, the Eats system, which started in 2014, has increased 54% according to the same Q1 report, as more casinos have switch to to-go and delivery support.