Uber (UBER) said Monday it has agreed to buy Postmates for $2.65 billion in an all-stock deal, calling the startup “highly complementary” to Uber Eats, its meal delivery service.
“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,” Uber CEO Dara Khosrowshahi said in a statement Monday.
The deal, which is subject to regulatory approvals, is expected to close in the first quarter of 2021. Uber said it is “committed to provide bridge financing to Postmates” as it waits for approvals. Shares of Uber were up 5% in early trading Monday following the news.
Postmates is considered a pioneer in the on-demand delivery industry, but it is one of the smaller competitors in the US market. In May, the startup earned 8% of meal delivery sales in the US, according to analytics firm Second Measure. DoorDash, which acquired premium restaurant delivery service Caviar last August, is the US leader in terms of sales, with a 44% share.