Uber is on the verge of buying Postmates, report claims

Uber is on the verge of buying Postmates, report claims

Uber is close to acquiring on-demand delivery company Postmates, with a report suggesting a deal could be inked as soon as tonight.

Three people claiming to have knowledge of the matter told the New York Times that Uber has made a takeover offer, though cautioned that discussions were still ongoing and could yet lead nowhere.

News of Uber’s interest in Postmates follows the ridesharing company’s failed attempt to acquire Grubhub, which was recently snapped up by Europe-based Just Eat Takeaway in a $7.3 billion deal that made it the world’s largest online food delivery company outside of China.

Garen M/Creative Commons

Acquiring Postmates could help Uber to strengthen Uber Eats, its meal delivery business, as it seeks ways to boost its income after the coronavirus pandemic decimated its main ridesharing business. Whereas Postmates is a U.S.-only operation, Uber Eats operates globally but struggles to turn a profit.

The Times points out, such a deal could prove also useful for Postmates as the company has found it hard to take on larger outfits in the same game, among them DoorDash, Grubhub, and Uber Eats.

Interestingly, Postmates is reported to have been in talks with DoorDash and Grubhub, too, with both companies having also expressed an interest in acquiring the smaller business.

Digital Trends has reached out to Uber and Postmates for confirmation of the discussions, and we will update this article when we hear back.

Postmates launched in 2011 and is currently available in more than 4,200 cities in all 50 states and D.C. While meal delivery is a big part of its business, it also delivers just about anything else you might suddenly need. Indeed, one of its tag lines is, “We deliver more than dinner.”

Want to find out more about the best meal delivery apps currently available? Digital Trends has you covered.

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Published at Tue, 30 Jun 2020 03:45:45 +0000

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