American multinational ride-hailing company, Uber Technologies Inc. has officially acquired Postmates Inc. for approximately $2.65 billion in an all-stock transaction.
Uber announced the agreement in a statement made available on Monday.
According to the statement, the transaction brings together Uber’s global Rides and Eats platform with Postmates’ distinctive delivery business in the U.S.
“Postmates is highly complementary to Uber Eats, with differentiated geographic focus areas and customer demographics, and Postmates’ strong relationships with small- and medium-sized restaurants, particularly local favourites that draw customers to the Postmates brand.”
Additionally, Postmates has been an early pioneer of “delivery-as-a-service,” which complements Uber’s growing 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 more easily and cost-effectively 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 enjoy more opportunities to earn income, with increased batching of orders to make better use of their time. Following the closing of the transaction, Uber intends to keep the consumer-facing Postmates app running separately, supported by a more efficient, combined merchant and delivery network,” it added.
Reacting to the acquisition, Uber CEO Dara Khosrowshahi said “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.
“As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100 per cent year on year. We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country.”
Postmates Co-Founder and CEO Bastian Lehmann said “Over the past eight years we have been focused on a single mission: enable anyone to have anything delivered to them on-demand. 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.”
Uber currently estimates that it will issue approximately 84 million shares of common stock for 100 per cent of the fully diluted equity of Postmates.