Uber will acquire Postmates for approximately $2.65 billion in an all-stock transaction, significantly expanding the ride sharing service’s capabilities for delivering groceries, essentials and other retail goods. The consumer-facing side of the Postmates app will continue running separately, but Uber will combine both companies’ delivery networks to improve overall efficiency.
“Over the past eight years we have been focused on a single mission: enable anyone to have anything delivered to them on-demand,” said Bastian Lehmann, Co-Founder and CEO of Postmates in a statement. “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.”
While Uber has focused on the restaurant industry through Uber Eats, Postmates has already established itself in the retail space. Its most recent partners include 7-Eleven and Banana Republic, two retailers that signed on to improve their delivery options during the pandemic.
The boards of directors of both companies have approved the transaction, and stockholders representing a majority of Postmates’ outstanding shares have committed to support the transaction. The deal is still subject to the approval of Postmates stockholders, regulatory approval and other customary closing conditions, and is expected to close in Q1 2021.
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