According to Bloomberg Uber has agreed to purchase Postmates for $2.65 billion in an all stock deal. Earlier this month it was rumored that Uber would try to purchase Postmates and the deal has been approved by the Uber board and is expected to be formally announced sometime on Monday July 6. Last month Uber made a failed attempt to purchase food delivery service GrubHub for $6 billion. Last year Postmates raised private capital that valued the business at $2.4 billion.
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Honestly I expect all of these apps to die. Maybe Uber will stay afloat but that’s it
Uber was $8.5 billion in the red last year… seems like an odd time for them to be doing multi-billion-dollar acquisitions.
Corporate accounting. Uber is a shady company. They don’t follow rules and regulations, they don’t have much overhead, they take 20-60% of drivers fare, they claim they might never be profitable, and yet they still have the money to buy postmates.
It’s the old “make up the losses in volume” strategy
If it’s an all stock deal it doesn’t cost any money at all, so that’s ok.
Worked for amazon. look at them now. We all wishing we bought amazon back in the dotcom bubble era.
the grubhub deal wasn’t for 3.7 billion, it was 6 billion.
Fixed
“sometime on Mondy July 6.” Missed the a in Monday
Blck Mondy.
Fixed, thanks
I find postmates to provide the absolute worst and most expensive service of the delivery apps. On the other hand, they have a huge market presence in California. Would be nice if uber absorbed their merchants while standardizing costs and fees.
That’s not how markets work. With three major delivery services left now, they would have less need to do all those subsidized deliveries.
That’s not how postmates works. They have no relation to their merchants in most cases. With Postmates you give them your order, Postmates then calls in an order and finds a driver (their systems are not synced like the other apps), Postmates driver has a credit card loaded to pay for the order, then your food is delivered.
That’s not exactly correct either. Many times they do have relations with their merchants, but when they don’t you are correct that the driver swipes a card. But its not every order its maybe 2/3 of the time the order is paid for in advance and ready to be taken when the driver shows up (relationship order) and 1/3 of the time the driver places the order themselves using their Postmates CC)