Uber is set to purchase Postmates following the finalization of an agreement that will see Uber Technologies, Inc acquiring Postmates in a deal valued at $2.65 billion. Once the purchase is complete, Uber aims to use Postmates’ expertise as a delivery-as-a-service business to bolster its efforts in the delivery of essential goods.
Uber is a worldwide ride-hailing company that offers its users a variety of mobility services, including food delivery through Uber Eats, an electric bike-share service through JUMP, and standard ride-sharing options through the Uber app. Postmates, operating only in the United States, is an on-demand delivery company that brings users goods from local businesses. Postmates uses Global Positioning system technology, in conjunction with user data, to make decisions based on consumer demand.
Following completion of the purchase, Uber hopes that by using Postmates’ tools, it will allow the company to reach customers more effectively. In the Uber announcement, CEO, Dara Khosrowshahi explained that “Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery – they can be a hugely important part of local commerce and communities," while adding how Uber was "thrilled to welcome Postmates." The ongoing presence and effects of COVID-19 in the United States remains a motivator for Uber in this sense, as the company believes its service to be critical to helping consumers and the industry during quarantine.
Changes Coming To Uber & Postmates
At present, Uber expects to keep the Postmates application running separately from the Uber Eats and main Uber app, with the intent to build it into a more well-rounded platform. Uber currently lacks a delivery service that brings groceries and essential goods to buyers and the purchase of Postmates will likely change that. Essentially, with Postmates filling in a gap in Uber's portfolio, the company will be adding new revenue options to its business, while also providing customers with more options to order.
Consumers can expect a growth in on-demand deliveries from Uber as smaller businesses are added to its catalogs, which also means that couriers could see more opportunities to make money. Both the Uber Eats and Postmates apps will see adjustments to simplify and improve the process of selling through the platform, once the transaction is complete. The representative boards of Uber and Postmates have both approved the purchase, with the acquisition expected to close fully in the first quarter of 2021.
Source: Uber