July 06, 2020

Uber agrees to buy food-delivery service Postmates for $2.65 billion in stock

Uber has bought food-delivery service Postmates for $2.65 billion in stock, the companies announced Monday.

The deal brings together the fourth-largest U.S. food delivery service with Uber Eats, which trails only DoorDash in market share, according to Second Measure and Edison Trends. The companies said Uber intends to keep the Postmates app running separately, “supported by a more efficient, combined merchant and delivery network.”

Uber previously was in the running to buy rival food delivery service GrubHub, but talks broke down as the companies could not agree on a break-up fee, and the ride-sharing company grew frustrated with what it perceived as stalling tactics, CNBC previously reported. GrubHub instead sold to European food delivery service JustEatTakeaway in early June. Read rest here.