Uber acquired Postmates food delivery service for $ 2.65 billion, helping Uber Eats

Uber recently agreed to acquire Postmates food delivery service for $ 2.65 billion, to help Uber Eats. Previously, Uber had intended to acquire another food delivery service, Grubhub, but failed because of antitrust control.

The Postmates app will still function independently after being acquired by Uber, but it can be combined with Uber Eats drivers and payment services. Uber says this means consumers will be able to choose more restaurants, and drivers will be more efficient.

Currently, Uber Eats food delivery is helping Uber to offset the huge losses due to the Covid-19 epidemic. Food delivery is not Uber’s core business, but in the context that people have to be isolated at home, restaurants do not serve directly, then food delivery is crowned.

The Covid-19 plague reduced Uber’s ride count by 80%. Meanwhile, the number of Uber Eats rides has increased by 45% over the same period last year. Uber Eats is the only bright spot of Uber at the moment.

However, the food delivery segment is also very fierce, Uber Eats rivals are Grubhub and DoorDash. In particular, DoorDash is the No. 1 food delivery service in the US, accounting for more than 45% market share. Uber Eats accounts for about 29%, but after the acquisition of Postmates, it could increase 37% market share.

Reference: The Verge