SAN FRANCISCO — Uber Technologies, Inc. and Postmates Inc. have reached a definitive agreement under which Uber will acquire Postmates for approximately $2.65 billion in an all-stock transaction.
This 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.
As a result of the transaction, Postmates and Uber Eats will together offer more tools and technology to more easily and cost-effectively connect restaurants and merchants 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.
“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,” says Dara Khosrowshahi, CEO, Uber. “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.”
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.
The boards of directors of both companies have approved the transaction and stockholders representing a majority of Postmates’ outstanding shares have committed to support the transaction. The transaction is subject to the approval of Postmates stockholders, regulatory approval and other customary closing conditions and is expected to close in Q1 2021.