Confirmed: Uber Technologies (UBER) To Buy Postmates For $2.65 Billion

By Amit Chowdhry ● July 5, 2020
  • 07/06/2020 – Update: The deal has been confirmed today.
  • The board of directors at Uber Technologies Inc (NYSE: UBER) has reportedly approved a $2.65 billion acquisition of food delivery company Postmates in an all-stock deal

The board of directors at Uber Technologies Inc (NYSE: UBER) has reportedly approved a $2.65 billion acquisition of food delivery company Postmates in an all-stock deal. The deal is expected to be officially announced on Monday morning in the U.S.

Uber’s head of food delivery Pierre-Dimitri Gore-Coty will likely continue to run Uber’s combined delivery business, according to Bloomberg’s sources. Uber was recently reportedly interested in buying GrubHub last month, but they were outbid by Just Eat Takeaway.

The current market leader in food delivery is DoorDash. DoorDash was last valued at about $12.6 billion following a $600 million round of funding.

Postmates is likely going to be combined with Uber’s food delivery service called Uber Eats. Prior to this acquisition, Postmates has raised over $900 million in total funding from investors like BlackRock, Tiger Global, Manhattan Venture Partners, GPI Capital, Founders Fund, and 137 Ventures. Postmates was founded by Bastian Lehmann, Sam Street, and Sean Plaice about 9 years ago. And Postmates was part of Angelpad’s first startup accelerator cohort.

Key Quotes:

“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. As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100 percent year on year. We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country.”

– Uber CEO Dara Khosrowshahi.

“Over the past eight years we have been focused on a single mission: enable anyone to have anything delivered to them on-demand. Joining forces with Uber will continue that mission as we continue to build Postmates while creating an even stronger platform that brings this mission to life for our customers. Uber and Postmates have been strong allies working together to advocate and create the best practices across our industry, especially for our couriers. Together we can ensure that as our industry continues to grow, it will do so for the benefit of everyone in the communities we serve.”

– Postmates Co-Founder and CEO Bastian Lehmann.