Uber has reportedly consented to buy Postmates in an all-stock offer worth$2.65 billion. According to Bloomberg, the offer might be announced on Monday morning. Like other travel- and transportation-related services, Uber’s ride-hailing sector has actually been negatively affected by the COVID-19 pandemic, due to shelter-in-place orders throughout the United States. On-demand delivery, however, has grown, with individuals counting on services like Uber Eats to get food without leaving their houses. According to its last revenues report, Uber’s ride-hailing gross bookings dropped, but its food shipment service saw gross sales growth of 54%during its very first fiscal quarter. According to previous reports, Uber made a deal to buy Grubhub, another on-demand delivery service, earlier this year, however after that offer failed, it approached Postmates. Bloomberg reports that Uber and < a class="crunchbase-link"href="https://crunchbase.com/organization/postmates"target="_ blank"data-type="company" data-entity =”postmates”> Postmates have really talked on and off for about 4 years, but settlements became more extreme about a week ago.
Grubhub ended up being gotten by Simply Eat Takeway in an offer worth $7.3 billion after its settlements with Uber stalled.
With an evaluation of $2.4 billion, Postmates is a smaller business than Grubhub. The company filed to go public in February 2019, but decided to hold back due to the fact that of “choppy market
” conditions. If the deal goes through, the primary rivals in the American food shipment market would be Uber Eats/Postmates versus Grubhub/Takeaway versus DoorDash.
In other nations, companies like Grab have likewise begun building out their on-demand shipment services to make up for losses from less ride-hailing bookings. For example, Get responded to stay-at-home orders in Indonesia (its primary market) and other Southeast Asian countries by re-deploying ride-hailing drivers to on-demand shipments for food and vital products.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.