SAN FRANCISCO — Uber has agreed to amass the meals supply start-up Postmates for $2.65 billion, stated two folks with information of the deal, because the ride-hailing agency goals to develop its presence in on-demand meals supply whereas its core enterprise struggles.
The businesses plan to announce the all-stock deal as quickly as Monday, stated the 2 folks, who spoke on situation of anonymity as a result of the talks had been confidential.
Uber is predicted to mix Postmates with its personal meals supply subsidiary, Uber Eats, which has been rising through the coronavirus pandemic. Pierre-Dimitri Gore-Coty, Uber’s head of meals supply, will run the providers after the deal has closed, the folks added.
A spokesman for Uber declined to touch upon Sunday evening, and a spokeswoman for Postmates didn’t instantly reply to a request for remark. Bloomberg earlier reported the specifics of the deal.
Meals supply apps, which join drivers, eating places and clients, have grown shortly in recent times, fueled by enterprise capital and armies of contract staff. However the providers they provide aren’t very completely different from each other, resulting in heavy competitors and strain to maintain charges low. Whereas extra folks have been utilizing supply providers through the pandemic, earnings have been elusive.
Consequently, supply app corporations have circled each other, aiming to make offers to realize scale. Postmates beforehand mentioned attainable offers with DoorDash, the largest service in the United States, and another rival, GrubHub, according to two people with knowledge of the talks.
In recent months, Uber also discussed buying GrubHub. But last month, GrubHub was instead sold to Just Eat Takeaway, a European delivery company, for $7.3 billion.
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.