Business

Uber completes purchase of Postmates for $ 2.65 billion

The all-share agreement keeps Postmates branding and apps up to date.

3 min read

This article has been translated from our English edition.

Uber completes purchase of Postmates for $ 2.65 billion
Uber completes purchase of Postmates for $ 2.65 billion

This story originally appeared on Engadget

Uber announced that it has completed its purchase of the Postmates grocery and grocery delivery service, valued at $ 2.65 billion. The deal sees the two companies creating the second largest delivery platform in America by size only dwarfed by Doordash.

It is a statement About to keep promises Postmates as an independent consumer-oriented brand with simultaneous integration of your Backend on the Uber Eats platform. And both companies will work towards “improving the delivery of groceries, groceries, basic commodities and other products”.

The all-share deal was fueled in part by the collapse of Uber’s ride-sharing business in the wake of the COVID-19 pandemic. Postmates’ “beloved” brand is stronger than Uber in several areas including Los Angeles and the Southwest.

Uber’s purchase from Postmates, despite regulatory approvals, can make drivers and restaurants using the service nervous. The place eaterEarlier this summer, the deal said it would “reduce the number of delivery app options to three” and reduce people’s ability to conduct their business elsewhere.

It doesn’t help that Uber has used its resources to help its drivers steal vital health and safety measures, as it did in California. He spent a lot of money enforcing Proposition 22, which eliminated basic rights such as mandatory sick leave, overtime pay and reimbursement.

The bill was also written to ensure future governments would oppose it without a majority in California lawmakers. Politician reports that Uber CEO Dara Khosrowshahi said the company will work to push for similar legal changes in other states in the future.

Uber is focused on the grocery and grocery delivery business as it turned out to be a positive year that would otherwise be bad. With blockades and on-site orders all over the world, the need for ridesharing decreased significantly.

In its most recent financial report, the company said that its Mobility division saw revenue decrease roughly 53 percent, while its Uber Eats division saw a 125 percent increase. It is plausible that investment in this region will be doubled in the future to boost business while mobility remains in a forced flow due to the pandemic.

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