Foodtech

Uber makes $2.6B offer for Postmates

June 30, 2020 View comment (1)
Uber has offered to buy delivery business Postmates for $2.6 billion, according to The New York Times, as the food delivery sector faces further consolidation.

The offer follows Uber's recent failed attempt to buy Postmates' larger rival Grubhubsold this month to Europe's Just Eat Takeaway for $7.3 billion—due to reported antitrust concerns.

If confirmed, the deal would augment Uber's existing delivery business, Uber Eats, which grew over the course of the pandemic while its core ridehailing business suffered, according to Uber's first-quarter results.

In addition to the bid from Uber, Postmates has received an offer from a special purpose acquisition company and also revived possible plans for an IPO, according to CNBC. Postmates had originally intended to go public in 2019 but delayed plans due to poor market conditions. Rival DoorDash also filed to go public in February, but those plans were put in doubt after it raised $400 million at a near $16 billion valuation in June.

It's not the first time Postmates has received interest from Uber. Last July, the San Francisco-based company reportedly explored a sale to Uber Eats or DoorDash in lieu of a public offering.

Founded in 2011, Postmates is currently dwarfed by the likes of DoorDash, Uber Eats and Grubhub, with just 8% of the US food delivery market, according to analytics firm Second Measure.

The company was last valued at $2.4 billion when it secured $225 million from GPI Capital and Late Stage Management last September. It has raised over $900 million in total funding from backers including Glynn Capital, Oyster Ventures and Polaris Partners. In December, the business reportedly closed its office in Mexico City and laid off dozens of employees.

Image courtesy of Postmates

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