IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Uber reportedly in talks to buy Postmates in $2.6 billion deal

Sources say that a deal between Uber and Postmates could be announced soon

Uber is in discussions to acquire Postmates as part of an estimated $2.6 billion acquisition deal, according to insider sources.

Should a deal between the two companies come to fruition, it could be announced next week, if not sooner. The rumored deal marks Uber’s second attempt to acquire a food-delivery company this year.

Founded in 2011 and based in San Francisco, Postmates is the smallest among the major US food-delivery services. Per Pitchbook, the company has raised an estimated $906 million and was valued at $2.4 billion in 2019.

Should Uber acquire Postmates, this would effectively expand Uber’s food-delivery arm, Uber Eats. Uber Eats currently boasts the second-largest market share in the US, just behind DoorDash.

According to sources familiar with the matter, Postmates has also been in discussion with other possible buyers since as early as last year. 

The Wall Street Journal reported that Postmates has been planning on launching its initial public offering (IPO) in the coming days too. Postmates had confidentially filed for an IPO in February of last year but ultimately chose to delay its efforts after the IPO market became less accepting of unprofitable startups amid WeWork’s failed IPO

Though Uber chief executive Dara Khosrowshahi previously stated the company would ultimately opt to exit markets where it wasn’t the dominant food-delivery service, the coronavirus has boosted demand for food delivery services.

Just a few short weeks ago, Uber was in talks to purchase GrubHub, the Chicago-based food-delivery service company. Unfortunately for Uber, Just Eat Takeaway was able to swoop in and purchase the company for a whopping $7.3 billion.

Featured Resources

Four strategies for building a hybrid workplace that works

All indications are that the future of work is hybrid, if it's not here already

Free webinar

The digital marketer’s guide to contextual insights and trends

How to use contextual intelligence to uncover new insights and inform strategies

Free Download

Ransomware and Microsoft 365 for business

What you need to know about reducing ransomware risk

Free Download

Building a modern strategy for analytics and machine learning success

Turning into business value

Free Download

Recommended

Uber secures 30-month licence to operate in London
Policy & legislation

Uber secures 30-month licence to operate in London

28 Mar 2022

Most Popular

16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

13 May 2022
Russian hackers declare war on 10 countries after failed Eurovision DDoS attack
hacking

Russian hackers declare war on 10 countries after failed Eurovision DDoS attack

16 May 2022
Microsoft says it's provided over $100 million in tech support to Ukrainian government
cyber attacks

Microsoft says it's provided over $100 million in tech support to Ukrainian government

20 May 2022