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Uber to purchase Postmates for $2.65 billion

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Uber swallows Postmates in try for delivery supremacy

The pandemic drove online services through the roof as far as the online deliveries and orders are concerned. Two of the front runners of this business, Uber and Just Eat Takeaway.com, went head over heels in a race to purchase Grubhub.

The winner was Just Eat Takeaway.com, who acquired Grubhub for $7.3 billion. The deal will be sealed in the first quarter of 2021, and by this, the largest delivery company in the world will emerge. Together, the companies will have 70 million users worldwide.

Once Grughub was out of reach, Uber focused on purchasing the food-delivery service Postmates. The deal will cost the first $2.65 billion, a little more than the latter’s valuation - $2.4 billion. After the agreement, Postmates will be absorbed into the Uber Eats service.

Once the deals are closed, the “delivery war” would be between Uber Eats/ Postmates vs. Grubhub/Takeaway vs. DoorDash. 

According to the latest financial report from Uber, its ride-hailing service dropped due to the pandemic, but it managed to have a 54% growth in sales due to its food delivery service.  

During today's pre-market session, the stock price from Uber gained more than 5%. Just Eat Takeaway is currently trading higher by more than 0.50%. Grubhub is higher by more than 2.50% in pre-market trading.

Read more about the latest acquisitions on CAPEX.com!

Sources: techcrunch.com, marketwatch.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.