Uber made an offer to purchase Postmates food delivery service, according to the New York Times.
According to the Times, talks are still ongoing and the deal could fall apart.
For those who have paid attention to Uber, this appetite is not new, although constant. A little over a month ago, the carpool company allegedly continued the acquisition of Grubhub, another food delivery business. Grubhub was eventually acquired by Just Eat Takeaway as part of a $ 7.3 billion deal, but only after the deal with Uber failed due to various concerns.
The food delivery market is expected to benefit greatly from the COVID-19 pandemic as stores remain closed or take-out operations only. The latest revenues from the public transport company show that its public transport activity slows down while its food delivery service grows like hell. Gross bookings for Uber Eats in the last quarter were $ 4.68 billion.
So even if Uber still loses a ton of money ($ 2.94 billion, all costs included), its Uber Eats growth is staggering. And the green shoots could fuel part of this interest among other competitors.
If regulatory concerns were an issue, the postmates can make a better fit.
With a valuation of $ 2.4 billion, Postmates is significantly smaller than Grubhub. And while the company filed for publication nearly 16 months ago, it ultimately held back citing “unstable market” conditions.
So if Uber states and Postmates combined, the result would still be below Doordash’s market position, but still be competitive. DoorDash, last valued at $ 13 billion, filed for an IPO almost four months ago.
In addition, Postmates delivers more than food.
If the merger comes to fruition, the race for food delivery will be fueled in an interesting way: Uber Eats and Postmates against Grubhub and takeaways against DoorDash .
Post-postal workers declined to comment on rumors or speculation. Uber did not immediately respond to a request for comment.