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Uber buys Postmates for $ 2.65 billion to recover from COVID-19 losses

July 7, 2020

The mobility company is betting that home delivery will continue to grow as restaurants and bars are reopening around the world.

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Uber buys Postmates for $ 2.65 billion to recover from COVID-19 lossesUber buys Postmates for $ 2.65 billion to recover from COVID-19 losses

This story originally appeared on PC Mag

Uber signed a $ 2.65 billion deal to acquire Postmates, a new grocery company, this week.

While fewer people choose to share travel during a global pandemic, many order takeaway food. Uber clearly assumes that the trend towards home ordering will continue as restaurants and bars are reopening around the world.

Uber, which launched its own food delivery platform in 2014, is expected to merge Postmates with Uber Eats under the command of Pierre-Dimitri Gore-Coty, head of food delivery. Bastian Lehmann, CEO of Postmates, and his team will remain to manage Postmates as a separate service, reports Bloomberg.

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It is a statement Over said Postmates “is very complementary to Uber eatswith different geographic focuses and customer demographics as well as strong relationships between Postmates and small and medium-sized restaurants, in particular with local favorites, who win customers for the Postmates brand. In addition, Postmates was one of the first pioneers in delivery as a service and complemented Uber’s growing efforts to deliver food, staple and other goods. “

This deal comes immediately after Uber’s failed takeover of the food delivery rival GrubHub Last month. Instead, GrubHub was sold to the European company Just Eat for $ 7.3 billion. Of course there is no shortage of online food ordering platforms. Customers can choose between mobile home services such as Rappi, DoorDash, Seamless, Delivery.com or Instacart. And many have done so during the current COVID-19 crisis, though as New York Timesthe profits remain elusive.

This deal comes right after Uber’s failed takeover of grocery supplier GrubHub last month / Image: Depositphotos.com

Even together, Uber Eats and Postmates cannot compete with DoorDash, which, according to the report from last year, had the largest share (35 percent) of US grocery sales Edison Trends 2019. UberEats and Postmates made up 25 percent and 6 percent, respectively. GrubHub held on with a 23 percent share. In the meantime, Uber’s main transportation business is affected as more people stay home and avoid public transportation during the pandemic. In May, the company recorded a loss of $ 2.9 billion in the first three months of 2020 and fired more than 14 percent of its workforce.