Uber Technologies, Inc. (NYSE: UBER) acquired Postmates, Inc., an on-demand food delivery company, for approximately $2.65 billion in an all-stock transaction.
Uber currently estimates that it will issue approximately 84 million shares of common stock for 100% of the fully diluted equity of Postmates. 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, subject to the approval of Postmates stockholders, regulatory approval and other customary closing conditions and is expected to close in Q1 2021, brings together Uber’s global Rides and Eats platform with Postmates’ delivery business in the U.S.
Postmates is complementary to Uber Eats, with differentiated geographic focus areas and customer demographics. Additionally, the acquired company has been a pioneer of “delivery-as-a-service,” which complements Uber’s efforts in the delivery of groceries, essentials, and other goods.
For restaurants and merchants, Postmates and Uber Eats will together offer more tools and technology to connect with a bigger consumer base. Consumers will benefit from expanded choice across a wider range of restaurants and other merchants. And delivery people will have more opportunities to earn income, with increased batching of orders to make better use of their time.
Following the closing of the deal, Uber intends to keep the consumer-facing Postmates app running separately, supported by a more efficient, combined merchant and delivery network.
Led by co-founder and CEO Bastian Lehmann, Postmates provides an on-demand food delivery platform that gives customers access to merchants in the US with more than 600,000 restaurants and retailers available for delivery and pickup.
Led by CEO Dara Khosrowshahi, Uber started in 2010 to enable people to get access to a ride via mobile phone and is now building additional products changing how people, food, and things move through cities.
FinSMEs
07/07/2020