Uber acquires Postmates for $2.6B in stock

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.

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.