Uber Buying Postmates In All-Stock Deal Valued At $2.65B: Report

Uber Technologies Inc UBER is acquiring Postmates Inc, an online food delivery service, for $2.65 billion in an all-stock deal.

What Happened

The deal will be announced Monday morning, according to the sources of Bloomberg.

It is expected that the vice president of Uber Eats, Pierre-Dimitri Gore-Coty, will continue to run the combined delivery business.

It is not yet clear what role Postmates CEO Bastian Lehmann will be taking up after the process is completed. 

The takeover will bolster Uber against the largest food delivery service in the United States – the privately held DoorDash Inc.

Why It Matters

Uber’s board of directors has approved the deal, which is still subject to change, according to Bloomberg. 

The acquisition of Postmates by Uber comes after it failed to purchase GrubHub Inc GRUB, which was taken over by Just Eat Takeaway.com N.V. TKAYF for $7.3 billion last month. 

Postmates had plans of its own to go public and had confidentially filed to go public in February; it has been valued at $2.4 billion by investors in September last year. 

Price Action

Uber shares traded 0.20% higher at $30.74 in the after-hours session on Thursday. The shares had closed the regular session 0.82% higher at $30.68.