This archive report was first published on 30 June 2020.
As the COVID-19 pandemic continues to surge, Uber Technologies is exploring the acquisition of food delivery app Postmates, a move that could help it expand its food delivery services in the U.S. and capitalize on the growing demand for delivery services.
According to reports, the deal could value Postmates at $2.6 billion, making it a significant acquisition for Uber's food delivery business, Uber Eats.
Postmates, an American company that offers local delivery of restaurant-prepared meals and other goods, operated in 2,940 U.S. cities as of February 2019.
Meanwhile, the British food delivery platform Just Eat Takeaway has acquired America's Grubhub for $7.3 billion, creating the world's largest food delivery service outside China. The acquisition edged out Uber Technologies, which had expressed interest in Grubhub.
As the pandemic continues to impact the ride-hailing industry, Uber is shifting its focus to delivery services, a move that could help it compensate for the cratering of its core ride-hailing business.
