Uber has acquired Postmates for $2.65 billion. With the acquisition in the rear view mirror, Postmates will continue to operate under its own name. With the deal, Uber has a 37% market share in the food delivery space.
“We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country,” Uber CEO Dara Khosrowshahi stated.
“Together we can ensure that as our industry continues to grow, it will do so for the benefit of everyone in the communities we serve,” Postmates Co-Founder and CEO Bastian Lehmann added.
Having acquired Postmates, Uber continues to move forward within the industry. In the first quarter of 2020, Postmates had $107 million in revenue. Moreover, they were performing extremely well in major markets such as Los Angeles, Phoenix and Las Vegas. Not to mention, the food delivery service had raised nearly $1 billion in funding. The $2.65 billion sale will prove to be lucrative to investors as the most recent valuation placed Postmates at $2.4 billion
In spite of the deal, DoorDash remains the food delivery industry leader with 45%. Following behind, Grubhub would hold 17% of the market share. However, Just Eat Takeaway acquired Grubhub for $7.3 billion last month. Moving forward, Uber and DoorDash will control more than 80% of the market.