Uber is buying up its rival for $ 2.65 billion

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Uber rings a huge amount in the form of shares for one of its serious competitors: as the company officially confirmed, it is buying the Postmates courier service for $ 2.65 billion, which until now was an important competitor to Uber Eats' food delivery service. For the time being, Uber will retain the Postmates brand, but will begin to merge the technology behind the service with its own, allowing its drivers to be delivered to their homes under the banner of both brands in parallel. Customers will still be able to use the services through two separate applications.

Will you be there?

Péter Janklovics stands-up at SYSADMINDAY!

Will you be there?
Péter Janklovics stands-up at SYSADMINDAY!

The timing is not accidental, Uber is likely to seek to levy as widely as possible the food delivery market, which is raging due to the global coronavirus epidemic. As the company points out in its announcement confirming the acquisition, Uber Eats ’food orders grew by more than 100 percent in Q2 this year. This is also what the company really needs during the period, as its freight service orders show a trend that is just the opposite of food delivery, and have fallen sharply with curfew restrictions.

San Francisco-based Postmates ’good relationships with small and medium-sized restaurants could open the door for Uber to new segments, especially since the company is engaged not only in the delivery of food but also other products. Postmates ’service also covers areas where Uber Eats does not have a strong presence. Uber had previously tried to engulf another similar rival, GrubHub, but negotiations ran aground here due to competition concerns, and the company was eventually bought by a European delivery giant, Just Eat Takeaway, for about $ 7.3 billion.

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