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Uber Purchases Postmates for $2.65B

Published on Dec 2, 2020 at 8:21 am in News.

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On December 1, Uber completed its $2.65 billion acquisition of the delivery service Postmates. The deal was announced back in July, with the goal of helping boost Uber’s growing effort in the delivery of groceries, essentials, and other goods.

According to Uber, Postmates and Uber Eats will continue to run separately but will be supported by a combined merchant and delivery network. The U.S. Justice Department approved the all-stock purchase in November.

In a press release, Uber CEO Dara Khosrowshahi made the following statement: “Uber and Postmates have long been committed to powering delivery services that support local commerce and communities, all the more important during crises like the one we face today. We’re thrilled to bring these two teams together to continue to innovate, bring ever-better products and services for merchants, delivery people, and consumers across the country.”

This acquisition comes at a time when coronavirus pandemic restrictions have given a boost to the delivery of food and other goods. Just in the third quarter of this year, Uber Eats brought in revenue of $1.45 billion—which is a 125% year-over-year increase. Uber estimates that for the quarter ending December 31, Postmates could contribute $350 million to $400 million to gross delivery bookings. Additionally, integrating Postmates will also increase Uber’s delivery business’ adjusted Ebitda loss by about $7 million to $12 million.

Recently, food delivery apps have faced pressure from the restaurant industry and municipalities over the commissions they take for deliveries and other issues, including their classification of delivery workers as independent contractors. When Uber announced the completion of the Postmates deal, the company said it will begin a national listening tour designed to understand merchants’ needs better and continue developing products, services, and policies that protect their interests.

It has yet to be seen how this acquisition will impact workers from both platforms, or if there will be any effects on Uber’s ridesharing app. To learn more about the latest in the rideshare industry, click here.

In the event you’ve been involved in an accident involving an Uber Eats delivery driver or an Uber rideshare driver, you may have grounds to take legal action. The Rideshare Law Group can help. To learn more about your legal rights and options after an accident, schedule a free case evaluation with our law firm today.