Uber said in a news release that the newly combined third-party delivery entity combines the strengths of each platform to create a more powerful player in the highly competitive restaurant delivery market. The deal means Uber's "Rides" and "Eats" platforms join the differentiated geographic areas and customer demographics of Postmates, along with Postmates more localized small- and medium-sized restaurant connections. Uber also views Postmates' involvement in the "delivery-as-a-service" market as an added plus since it complements Uber's efforts in delivering groceries, essentials and other goods.
Following the closing of the transaction, Uber intends to keep the consumer-facing Postmates app running separately, supported by what it said is a more efficient, combined merchant and delivery network. Uber will issue about 84 million shares of common stock for all of the fully diluted equity of Postmates, according to the press release.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.