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Uber Officially Completes Its $2.65B Postmates Buy

By  |  December 1, 2020

Uber has completed its US$2.65 billion purchase of food-and-grocery delivery service Postmates, the company has announced, reported TechCrunch. The deal sees the two companies creating the second largest delivery platform in the US by size, dwarfed only by Doordash. 

In a statement, Uber committed to keeping Postmates as a separate, consumer-facing brand, while integrating its back-end into Uber Eats’ platform. Both companies will work to ensure that they can “strengthen the delivery of food, groceries, essentials and other goods.”

The all-stock deal was prompted, in part, by the collapse of Uber’s ride-hailing business in the wake of the COVID-19 pandemic. Postmates’ “beloved” brand is also stronger than Uber in a number of areas, including LA and the south west. 

Uber’s purchase of Postmates, while approved by regulators, may cause some nervousness among the drivers and restaurants that use the service. Eater, earlier this summer, said that the deal will “condense the number of delivery app options to three,” reducing people’s ability to take their business elsewhere.