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Uber acquires Postmates for $2.6B in stock

By
Don Jacobson
The Uber logo is seen on the floor of the New York Stock Exchange on May 10, 2019, before the company began trading publicly for the first time on Wall Street in New York City. File Photo by John Angelillo/UPI
The Uber logo is seen on the floor of the New York Stock Exchange on May 10, 2019, before the company began trading publicly for the first time on Wall Street in New York City. File Photo by John Angelillo/UPI | License Photo

July 6 (UPI) -- Uber has acquired rival food delivery service Postmates for about $2.6 billion in an all-stock deal, the two companies announced Monday.

As part of the deal, Postmates' delivery service and relationships with small- and medium-sized restaurants will be paired with Uber's Rides and Eats platform.

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Uber said in the spring that demand for ride-share service had fallen 80 percent year-to-year and its food delivery business had increased 50 percent amid the COVID-19 pandemic.

"Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery -- they can be a hugely important part of local commerce and communities, all the more important during crises like COVID-19," Uber CEO Dara Khosrowshahi said in a statement.

"Uber and Postmates have been strong allies working together to advocate and create the best practices across our industry, especially for our couriers," added Postmates co-founder and CEO Bastian Lehmann.

The combination follows a merger last month between competitor GrubHub and Just Eat Takeaway. Another rival delivery service, DoorDash, acquired Caviar from mobile payment company Square last year.

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