Uber Technologies in Talks to Acquire Food Delivery App Postmates

Uber Technologies is in talks to acquire food delivery app, Postmates, a move that seeks to expand food delivery services in the U.S. and capitalize on a surge in orders during the COVID-19 pandemic.

On the other hand, Postmates is exploring various paths to go public, with one option being merging with a special purpose acquisition company.

A tie-up could bolster Uber’s food delivery business, Uber Eats, and help it compensate for the cratering of its core ride-hailing business, which has collapsed in many cities because of the coronavirus pandemic. 

According to the Wallstreet Journal, the deal could value Postmates at $2.6 billion.

Early this month, the British food delivery platform, Just Eat Takeaway, 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.

Postmates is an American company that offers local delivery of restaurant-prepared meals and other goods. As of February 2019, Postmates operated in 2,940 U.S. cities.