Uber Technologies Inc. announced yesterday its $2.65 billion acquisition of Postmates, a rival food delivery company. The all-stock transaction was approved by the companies’ respective boards of directors and awaits regulatory approval. The merger is expected to close in the first quarter of 2021.
In yesterday’s press release, Uber listed a few of the merger’s beneficial qualities. “Postmates is highly complementary to Uber Eats, with differentiated geographic focus areas and customer demographics,” it writes. “[The company] 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.” Uber approximates that it will provide about 84 million “shares of common stock for 100% of the fully diluted equity of Postmates.”
Postmates CEO Bastian Lehmann believes the merger will enable more food deliveries and create a stronger platform. “Uber and Postmates have been strong allies working together to advocate and create the best practices across our industry, especially for our couriers. Together we can ensure that as our industry continues to grow, it will do so for the benefit of everyone in the communities we serve,” he said.
Uber CEO Dara Khosrowshahi was also optimistic about the merger and claimed that it will increase productivity. “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,” said the CEO. “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,”