Uber To Purchase Postmates For $2.65 Billion All Stock Deal--TheCreditShifu.com

Uber Technologies Inc. has agreed to acquire Postmates Inc. in a $2.65 billion all-stock deal which should be announced early this week. UberEats head Pierre-Dimitri Gore-Coty is rumored to continue to run Uber’s combined delivery business, and Postmates Chief Executive Officer Bastian Lehmann with his team will stay on to manage Postmates as a separate service.

Last month Uber made an unsuccessful attempt to purchase food delivery service GrubHub for $3.7 billion, to help Uber strengthen its position against privately-held DoorDash, the current market leader in U.S. food delivery. GrubHub was snatched away from Uber by Dutch company Just Eat Takeaway.com for $7.3 billion. 

Founded 9 years ago, Postmates was among the first meal delivery apps in the U.S. With intense competition in the past 5 years, Postmates now holds the fourth position on the market, and maintains a strong position in Los Angeles and the American Southwest.

Uber closed shares at $30.68 on Friday, after having gone up more than 4% on initial reports of its bid for Postmates.

The spread of COVID-19 has been tough for people who drive and deliver. Many of Uber’s independent workers have provided critical services during this crisis—from getting essential workers to their jobs to getting food to people at home. Uber has launched several new initiatives to support their workers, including: allocating $50 million on PPE for drivers and delivery people globally, and launching the Work Hub, to help drivers to find other work, whether with Uber or another company. 


Leave a Reply
You May Also Like

Three Things You Must Do to Get Out of Financial Hardship

The economic fall out due to the coronavirus outbreak and temporary or…

United and Delta Might Sell Miles Early to Raise Cash Amidst the COVID-19 Crisis

As the coronavirus forces would-be travelers to stay indoors, airlines in every…

US Bank Releases Business Card with 48 Bonus Categories

US Bank recently released a new business credit card called the US Bank Business Leverage Visa Signature. The card features 48 potential bonus categories of which card holders will earn 2x on two categories out of the 48. The card also features 1 extra point per dollar spent, up to 100,000 points in the first year, instead of a sign up bonus, so that is 3x on the bonus categories in the first year. The card charges an annual fee of $95, waived for the first year.

A Guide to Tax Deduction and Credits in 2020

There is only a month left until the tax day–the deadline to…