This archive report was first published on 30 June 2020.
As the COVID-19 pandemic continues to reshape the global economy, Uber is exploring opportunities to expand its presence in the food delivery market. According to reports, the company is in talks to acquire Postmates, a San Francisco-based food delivery company, for approximately $2.6 billion.
Postmates, founded in 2011, has raised around $906 million and was valued at $2.4 billion in 2019. The company had confidentially filed for an initial public offering (IPO) in February 2020 but delayed the plan due to unfavorable market conditions.
Uber's interest in Postmates comes as the food delivery sector experiences significant growth during the pandemic. While many brick-and-mortar stores and restaurants remain closed, food delivery companies like Postmates are seeing increased demand.
Uber Eats, the company's food delivery arm, reported gross bookings of $4.68 billion in the latest quarter, with a loss of $2.9 billion on all costs. Despite this, Uber Eats' growth remains staggering, with the company's Q1 per-share loss of $1.70 and revenues of $3.54 billion making for a mixed set of results.
