Uber Technologies Inc. said Monday it reached an agreement with Postmates Inc. to acquire the on-demand delivery company for about $2.65 billion in an all-stock transaction.
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The deal will marry Uber’s Rides and Eats platform with Postmates’ U.S. delivery business, which Uber called “highly complementary to Uber Eats.”
Uber estimates it will issue about 84 million shares of common stock for 100 percent of the fully diluted equity of Postmates, the company said in a written statement. Uber said it plans to keep the Postmates app running separately, “supported by a more efficient, combined merchant and delivery network.”
The announcement comes after both San Francisco-based companies had been in the news recently: Uber was seeking another acquisition deal after its June attempt to acquire GrubHub fell flat. Instead, Just Eat Takeaway.com acquired Grubhub for $7.3 billion. Meanwhile, Postmates was eyeing another go at an initial public offering, while also courting Uber.
On Monday, CNBC reported Uber’s ride bookings revenue was down 80 percent in April from a year earlier, while its food delivery business sales were up 54 percent during the same period.
Speaking about the acquisition, Postmates co-founder and CEO Bastian Lehmann said in a written statement: “Over the past eight years we have been focused on a single mission: enable anyone to have anything delivered to them on-demand. Joining forces with Uber will continue that mission as we continue to build Postmates while creating an even stronger platform that brings this mission to life for our customers.”
Postmates has raised a total of $903 million in venture-backed funds since its inception in 2011, according to Crunchbase data. It’s last venture raise was a $100 million Series F in January 2019, led by BlackRock, Glynn Capital Management and Tiger Global Management. Uber has raised a total of $24.7 billion since it was founded in 2009. The company went public in 2019.
Illustration: Li-Anne Dias