Uber , the most popular ride hail company has made a major move to buy off Postmates for $2.65 billion. Postmates is an American company that specializes in deliveries of restaurant-made meals around America. Postmates was founded by Bastian Lehman, Sean Plaice and Sam Street in 2011 and has its headquarters in San Francisco.
This will hopefully give Uber Eats a chance in competing with the leader in door to door food delivery company called DoorDash. Uber Eats is Uber’s own food delivery service and operates in the United States and a number of other countries in the world , including Kenya where it is leading followed by companies like Glovo , Jumia Foods, Yum delivery among others.
This will be Uber’s second attempt at acquiring a food delivery company after its initial attempt to acquire GruubHub failed. This seems to be the right move for Uber since the corona virus has had Uber making losses for the better part of 2020. Uber hopes that more door- to-door deliveries are yet to be made in the future and this acquisition is going to give them a fighting chance.Buying off Postmates will boost Uber Eats penetration in the United States.
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Postmates will however still operate on its own but with an added roster of merchant and delivery network combined with Uber Eats. With Postmate acquired by Uber Eats it will mean more restaurant options for consumers.