According to a news report published by Bloomberg, Uber Technologies inc is set to acquire Postmates, a food delivery company, in a $2.65 billion all-stock deal. Although the announcement is yet to be publicised sources familiar with negotiations between the two companies say the deal is done.
If actualised, the deal would be a major boost to Uber whose ride-hailing business has been negatively affected by the lockdown measures imposed in many countries to combat the COVID-19 pandemic.
Uber Eats set to acquire Postmates
Source: Kenyan Wall Street
Uber has made an offer for Grubhub, a much larger US food delivery company, but the talks fell through and the food delivery app was acquired by Just Eat Takeaway in a deal worth $7.3 billion.
The two companies have held on and off talks over the past four years, but the negotiations got serious recently after the Grubhub deal fell through leaving Uber at a significant disadvantage against its peers.
Uber shares were trading up 5.57% at $32.39 in the premarket session having closed Thursday’s trading session at $30.68.
Uber Technologies share price
Traders are waiting to see if the deal will be announced later today.