Company That Bought Postmates in 2020 NY Times

In 2020, Uber acquired Postmates, a food delivery and logistics company. This acquisition marked a significant move by Uber to expand its presence in the food delivery market.

The acquisition was announced on December 7, 2020, and the deal was valued at around $2.65 billion.

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Uber acquired Postmates in a deal worth $2.65 billion, making it the largest deal between two American-based food delivery companies in 2020.

The acquisition was an all-stock deal, where Uber issued approximately 84 million shares of common stock for 100% of the fully diluted equity of Postmates.

Postmates was founded in 2011 by Bastian Lehmann, Sam Street, and Sean Plaice, and it has grown to include 600,000 merchants across all 50 states.

Uber's CEO, Dara Khosrowshahi, said that the acquisition will allow Uber Eats to deliver not only restaurant food, but everything from groceries to personal care and fashion items.

The combined market share of Uber Eats and Postmates would be roughly 35%, making them the second-largest delivery platform in the US, behind DoorDash's 50% market share.

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Uber plans to run the consumer-facing Postmates app separate from its Uber Eats app, and will use the learnings from a national listening tour in 2021 to develop products, services, and policies that protect the interest of restaurant and retail partners.

The acquisition will give Uber Eats the largest market share in Los Angeles and builds on its lead in Miami, which are Postmates' two largest cities.

Uber estimates that Q2 bookings on Uber Eats are up more than 100 percent year on year, and that the acquisition will create profitability for the Uber's Eats unit, as well as some $200m in cost-saving synergies in about two years.

Here are the key details of the acquisition:

The deal details are quite impressive. Uber acquired Postmates in a $2.6 billion all-stock deal. The acquisition is expected to give Uber a roughly 30 percent share of the United States food delivery market.

The deal was announced on Monday, and both companies' boards had approved it. Uber will issue some 84 million shares of common stock as part of the deal. The acquisition is subject to regulatory approval.

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Postmates was founded in 2011 by Bastian Lehmann, Sam Street, and Sean Plaice. The company has grown to include 600,000 merchants across all 50 states. Uber plans to merge Postmates with its popular homegrown food-delivery app Uber Eats.

Pierre-Dimitri Gore-Coty, the vice president of Uber Eats, is expected to run the combined delivery business. The acquisition allows Uber to expand into Postmates' existing network in 4,200 US cities.

For another approach, see: Postmates Deliver Cigarettes