Uber set to snap up Postmates in £2.65bn deal

Uber set to snap up Postmates in £2.65bn deal

Uber set to snap up Postmates in £2.65bn deal

That's compared with Uber Eats' 20% share before the Postmates deal.

Pierre-Dimitri Gore-Coty, the vice president of Uber Eats, is expected to run the combined delivery business, according to both The Times and Bloomberg. Under their agreement, Postmates Chief Executive Officer Bastian Lehmann and his team will stay on to manage Postmates as a separate service, another person said.

Uber, which has been under pressure as ride-hailing services across the globe plummets because of lockdowns, offered a premium of about 10% on Postmates' last valuation of $2.4 billion.

Founded in 2011, San Francisco-based Postmates accounted for 8% of the USA meal delivery market in May, with its biggest rival DoorDash leading with a 44% market share, according to analytics firm Second Measure.

Bloomberg reported talks between the two parties had been "on and off" for around four years but moved forward within the last week after a new approach from Uber. Uber's board of directors has approved the deal, a person said, though the plans could still be subject to change.

USA online food delivery company Grubhub agreed to be acquired in June by Just Eat Takeaway.com NV in a $7.3 billion deal. Uber shares closed up more than 4pc at $30.68 after initial reports about its bid emerged.

Last week, Reuters reported that Postmates had revived plans for an initial public offering following dealmaking in the USA online food delivery service sector that sparked acquisition interest in the company. It raised private capital past year in a deal that valued the business at $2.4 billion.

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