Uber acquires American food delivery player Postmates for $2.65 billion

Uber is planning to acquire food delivery service Postmates in a $2.65 billion all-stock deal after its offer to buy Grubhub ended due to antitrust scrutiny.

Postmates app will continue to run separately after the acquisition, but it’ll be able to tap into a merchant and delivery network combined with Uber Eats, shared a reported Bloomberg.

With this acquisition, customers will have more restaurant options for consumers and more efficient deliveries for drivers who pick up multiple orders at a time.

As per reports the deal is expected to close in early 2021.

Uber Eats has seen an acceleration in demand since mid-March, with 89 percent year-over-year gross bookings growth in April excluding India. And the company is also abandoning its unprofitable markets at a steady clip. Uber recently shuttered its Eats business in eight cities, reports says.

Postmates is located in San Francisco. As of February 2019, Postmates operates in 2,940 U.S. cities. The service relies on mobile phone applications and their Global Positioning System capabilities to match inventories and consumer demand.