Uber Technologies on Monday offered to buy Postmates in a $2.65 billion (roughly Rs. 19,741 crores) all-stock deal, looking to expand its reach in the food-delivery services arena while more people order at home due to coronavirus-led restrictions.
Uber, under pressure as its core ride-hailing business reels from lockdowns across the globe, offered a premium of about 10 percent on Postmates’ last valuation of $2.4 billion (roughly Rs. 17,890 crores). Postmates in September raised $225 million (roughly Rs. 1,677 crores) in a private fundraising round.
Uber currently estimates that it will issue about 84 million shares of common stock for 100 percent of the fully diluted equity of Postmates, the company said in a statement.
The boards of both companies have approved the transaction, and stockholders representing a majority of Postmates’ outstanding shares have committed to support the transaction, it added.
Postmates operates in 4,200 US cities delivering food and other products from restaurants and stores to customers’ doorstep. One of the many taglines reads – “Have chips but no guac? Postmate it.”
Founded in 2011, San Francisco-based Postmates accounted for 8 percent of the US meal delivery market in May, with its biggest rival DoorDash leading with a 44 percent market share, according to analytics firm Second Measure.
The move comes only weeks after Uber abandoned its plan to buy Grubhub through its Uber Eats business. The US online food delivery company was acquired in June by Just Eat Takeaway.com in a $7.3 billion (roughly Rs. 54,478 crores) deal.
© Thomson Reuters 2020