SAN FRANCISCO — Uber has agreed to accumulate the meals supply start-up Postmates for $2.65 billion, because the ride-hailing agency goals to develop its presence in on-demand meals supply whereas its core enterprise struggles.
The firms introduced the all-stock deal on Monday morning. Uber will mix Postmates with its personal meals supply subsidiary, Uber Eats, which has been rising through the coronavirus pandemic.
Food supply apps, which join drivers, eating places and prospects, have grown rapidly lately, fueled by enterprise capital and armies of contract staff. But the providers they provide are usually not very totally different from each other, resulting in heavy competitors and strain to maintain charges low. While extra folks have been utilizing supply providers through the pandemic, earnings have been elusive.
As a consequence, supply app firms have circled each other, aiming to make offers to realize scale. Postmates beforehand mentioned doable offers with DoorDash, the biggest service within the United States, and one other rival, GrubHub, in accordance with two folks with information of the talks.
Together, Postmates and Uber Eats would have a 37 percent share of food delivery sales in the United States, according to Edison Trends, which tracks credit card spending. DoorDash would remain the largest player with 45 percent, while GrubHub would have 17 percent.
Uber is looking for growth as more people stay home during the pandemic and its core ride-hailing business has struggled. In May, Uber posted a $2.9 billion loss for the first three months of the year and announced it was laying off 14 percent of its work force. But revenue for its Uber Eats division rose 53 percent.
Postmates, last valued by investors at $2.4 billion, is smaller than the other players. Founded in 2011, it was among the first start-ups to use part-time “gig workers” to deliver customers whatever they wanted at the tap of a smartphone button.
Postmates has raised more than $900 million in funding, according to PitchBook, from investors including Spark Capital and Tiger Global Management. It had filed to go public.