Uber officially takes over food delivery service Postmates for $2.6B

Date: 2020-07-08   Author: Pankaj Singh  Category: #news

Uber officially takes over food delivery service Postmates for $2.6B

American ride-hailing company, Uber Technologies, has reportedly announced that it has acquired food delivery service, Postmates, for a total worth of $2.65 billion.

Sources claim that Uber has been desperately looking for ways to make up for the huge losses incurred by its food delivery division since the start of the COVID-19 pandemic. Both, its food delivery as well as ride-hailing business, have been affected due to the ongoing crisis. The company is, however, hopeful that more people will be preferring to order food online as restaurants have been closed for in-person dining.

Uber’s ride-hailing demand has registered a slide of 80 per cent and it is anticipated that the company’s losses will continue to scale owing to a spike in the number of cases in many parts of the U.S. In May, the company had reported that there had been a 54 per cent year-over-year surge in its Uber Eats bookings due to the increased food delivery demand.

Uber Eats has been under tremendous strain owing to regulatory pressure and competition from DoorDash and Grubhub, state sources. The company has registered an increase in demand since mid-March, with an 89 per cent year-over-year surge in gross bookings during the month of April. Uber has also decided to abandon its unprofitable markets and has lately shuttered its Eats business in eight cities.

After the current acquisition, Postmates’ app will run individually. However, it will be able to tap into a merchant and delivery network in collaboration with Uber Eats. As per Uber, this feature will open up more restaurant options for customers and ensure efficient deliveries for drivers picking multiple orders at the same time. The acquisition will apparently improve Uber’s market share to 37 per cent from its existing share of 29 per cent.

The deal is expected to close in the first quarter of 2021.

 

Source Credits:

https://www.theverge.com/2020/7/6/21312447/uber-postmates-acquisition-announced-food-delivery



About Author


Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Antenatal Screening Market Share, By Product Analysis, Application, End-Use, Regional Outlook, Competitive Strategies & Forecast up to 2028

Author: Ashwin Naphade

Global Antenatal Screening Market, 2022-2028 Research Report provides crucial statistics on the market status of the Global Antenatal Screening manufacturers and is a respected source of guidance and direction for companies and individuals interes...


Pediatric Vitrectomy Market Size | Global Industry Analysis, Segments, Top Key Players, Drivers and Trends to 2028

Author: Ashwin Naphade

Global Pediatric Vitrectomy market report provides major statistics on the state of the industry and is a valuable source of guidance and direction for companies and individuals interested in the market.

The Pediatric Vitrectomy market repor...


Legionnaire Disease Testing Market Comprehensive Analysis, Share, Growth Forecast from 2022 to 2028c

Author: Ashwin Naphade

This report studies the Global Legionnaire Disease Testing market status and outlook of global and major regions, from angles of players, regions, product types and end industries; this report analyzes the top players in global and major regions, ...