On Monday, Uber Technologies Inc has offered Postmates Inc to buy in a $2.65 billion all-stock deal. The company is looking to expand its reach as more and more people are ordering from home boosting the food-delivery services arena due to coronavirus-led restrictions.
Uber has offered Postmate a premium of about 10% on its last valuation of $2.4 billion. The California based company is experiencing pressure as its core ride-hailing business reels from lockdowns across the globe. In September, Postmates raised $225 million in a round of private fundraising.
In a statement, according to an estimate by Uber, they will issue 84 million shares of Postmates common stock for 100% of the fully diluted equity.
The transaction has been approved by the boards of both companies as well as stockholders that are representing a majority of Postmates’ shares. They have committed to support the transaction.
Postmates deliver food and other products from restaurants and stores to customers’ doorstep in more than 4,200 cities in the U.S. The many taglines by the company reads “Have chips but no guac? Postmate it.”
According to Second Measure, an analytics firm, San Francisco-based Postmates was founded in 2011 and accounted for 8% of the meal delivery market in the U.S. In May, its biggest rival DoorDash lead with 44% market share.
Only weeks after Uber said that they are abandoning its plan to buy Grubhub Inc through its food delivery business, Uber Eats. In June, it was acquired by Just Eat Takeaway.com NV in a $7.3 billion deal.