Uber to acquire Postmates in $2.65 b agreement
August 12, 2020
Business

Uber to acquire Postmates in $2.65 b agreement, eyes food delivery business

WASHINGTON (US) – Uber Technologies Inc announced on Monday its decision to acquire Postmates Inc in a $2.65 billion deal. The firm is aiming to expand its reach into the food delivery business as the pandemic crisis has affected its ride-hailing business.

The bid comes weeks after Uber refused to ink a deal to buy Grubhub, which would have enabled its restaurant delivery service a shot in the arm to compete with market leader DoorDash.

Uber came out with a premium of 10% on Postmates’ last valuation of $2.4 billion. In premarket trading, Uber shares went up 9%.

“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,” said Uber Chief Executive Officer Dara Khosrowshahi.

In a statement Uber said it would issue about 84 million shares of common stock for 100% of the fully diluted equity of Postmates.

(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field

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