Uber: buys US food delivery company Postmates
(CercleFinance.com) - Uber said on Monday that it has agreed to acquire the US food delivery company Postmates for approximately 2.
65 billion dollars in an all-stock transaction.
In a statement, the ride-hailing giant said Postmates is "highly complementary" to Uber Eats, its own food delivery service, with "differentiated" geographic focus areas and customer demographics.
The San Francisco based group in particular cites Postmates' close relations with small- and medium-sized restaurants, and particularly local eateries.
Postmates also delivers groceries and alcohol.
"Clearly this is an aggressive move by Uber to take out a competitor on the Uber Eats front and further consolidate its market position, especially as the COVID-19 pandemic continues to shift more of a focus to deliveries vs. ridesharing in the near term," an analyst at Wedbush commented.
Uber currently estimates that it will issue approximately 84 million shares of common stock for 100% of the fully diluted equity of Postmates.
The Uber share was trading 6% higher in early trading after this announcement.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
65 billion dollars in an all-stock transaction.
In a statement, the ride-hailing giant said Postmates is "highly complementary" to Uber Eats, its own food delivery service, with "differentiated" geographic focus areas and customer demographics.
The San Francisco based group in particular cites Postmates' close relations with small- and medium-sized restaurants, and particularly local eateries.
Postmates also delivers groceries and alcohol.
"Clearly this is an aggressive move by Uber to take out a competitor on the Uber Eats front and further consolidate its market position, especially as the COVID-19 pandemic continues to shift more of a focus to deliveries vs. ridesharing in the near term," an analyst at Wedbush commented.
Uber currently estimates that it will issue approximately 84 million shares of common stock for 100% of the fully diluted equity of Postmates.
The Uber share was trading 6% higher in early trading after this announcement.
Copyright (c) 2020 CercleFinance.com. All rights reserved.