Uber to Buy Postmates for $2.65 Billion

Uber to Buy Postmates for $2.65 Billion

Technology|Uber to Buy Postmates for $2.65 BillionThe ride-hailing company's core business has struggled in the pandemic, and it is betting on growth of its Uber Eats division.

SAN FRANCISCO “” Uber has agreed to acquire the food delivery start-up Postmates for $2.65 billion, said two people with knowledge of the deal, as the ride-hailing firm aims to grow its presence in on-demand food delivery while its core business struggles.

The companies plan to announce the all-stock deal as soon as Monday, said the two people, who spoke on condition of anonymity because the talks were confidential.

Uber is expected to combine Postmates with its own food delivery subsidiary, Uber Eats, which has been growing during the coronavirus pandemic. Pierre-Dimitri Gore-Coty, Uber's head of food delivery, will run the services after the deal has closed, the people added.

A spokesman for Uber declined to comment on Sunday night, and a spokeswoman for Postmates did not immediately respond to a request for comment. Bloomberg earlier reported the specifics of the deal.

Food delivery apps, which connect drivers, restaurants and customers, have grown quickly in recent years, fueled by venture capital and armies of contract workers. But the services they offer are not very different from one