Uber Says It Will Become Profitable Next Year, Boosted By $2.65 Billion Postmates Acquisition

Uber Says It Will Become Profitable Next Year, Boosted By $2.65 Billion Postmates Acquisition

TOPLINE



After announcing on Monday its plan to buy Postmates for $2.65 billion, Uber says it's confident that the acquisition will help it become profitable by 2021, even as its ride-sharing business continues to struggle amid low demand during the coronavirus pandemic.









Uber's CEO says the deal can help the ridesharing giant finally achieve profitability.



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KEY FACTS







"We're very confident we're going to get to profitability next year and we have enough of a diversified portfolio to make that statement with quite a bit of confidence,“ Uber CEO Dara Khosrowshahi told CNBC on Tuesday.







Uber's stock has risen 7% since the company on Monday announced that it would buy food delivery service Postmates in an all-stock transaction, worth $2.65 billion, in a deal that will likely close in the first quarter of 2021. 







The deal merges the fourth-largest U.S. food delivery company with Uber Eats, the second-largest service by market share after DoorDash, according to Second Measure and Edison Trends.





Uber's Postmates acquisition will massively boost its Uber Eats service and comes weeks after it failed to buy larger rival GrubHub, which