Uber Technologies, Inc. (NYSE: UBER) and Postmates Inc. say they have reached an agreement where Uber will acquire Postmates for approximately $2.65 billion in an all-stock transaction. The Postmates transaction brings together Uber’s global Rides and Eats platform with Postmates’ delivery business in the U.S. Postmates is roughly the same as Uber Eats, with different geographic areas and customers.
Postmates does business with small- and medium-sized restaurants, particularly local favorites that draw customers to the Postmates brand. Postmates has been an early pioneer of “delivery-as-a-service,” which complements Uber’s growing survival efforts in the delivery of groceries, essentials, and other goods.
Uber today also said that users in some Latin American and Canadian cities can now order groceries through the Uber and Uber Eats apps, in partnership with Cornershop, the popular grocery delivery startup based in Santiago, Chile. This follows the companies’ 2019 agreement for Uber to acquire a majority stake in Cornershop, which is expected to close in the coming days. Today’s news marks Uber and Cornershop’s first integrated grocery delivery experience.
For restaurants and merchants, Postmates and Uber Eats will offer more tools and technology to connect with a bigger consumer base, it’s claimed. Consumers can expand choice across a wider range of restaurants and other merchants. Delivery people – currently grossly underpaid – will more opportunities to earn income, with “increased batching of orders to make better use of their time.”
Following the closing of the takeover, Uber intends to keep the consumer Postmates app running separately, “supported by a more efficient, combined merchant and delivery network.”
Uber currently estimates that it will issue approximately 84 million shares of common stock for 100% of the fully diluted equity of Postmates. The boards of directors of both companies have approved the transaction, and stockholders representing a majority of Postmates’ outstanding shares have committed to support the transaction.
However, the takeover is subject to the approval of Postmates stockholders, regulatory approval and other customary closing conditions and is not expected to close until Q1 2021.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Uber to Acquire Postmates, Cornershop Closing in Days
Uber Technologies, Inc. (NYSE: UBER) and Postmates Inc. say they have reached an agreement where Uber will acquire Postmates for approximately $2.65 billion in an all-stock transaction. The Postmates transaction brings together Uber’s global Rides and Eats platform with Postmates’ delivery business in the U.S. Postmates is roughly the same as Uber Eats, with different geographic areas and customers.
Postmates does business with small- and medium-sized restaurants, particularly local favorites that draw customers to the Postmates brand. Postmates has been an early pioneer of “delivery-as-a-service,” which complements Uber’s growing survival efforts in the delivery of groceries, essentials, and other goods.
Uber today also said that users in some Latin American and Canadian cities can now order groceries through the Uber and Uber Eats apps, in partnership with Cornershop, the popular grocery delivery startup based in Santiago, Chile. This follows the companies’ 2019 agreement for Uber to acquire a majority stake in Cornershop, which is expected to close in the coming days. Today’s news marks Uber and Cornershop’s first integrated grocery delivery experience.
For restaurants and merchants, Postmates and Uber Eats will offer more tools and technology to connect with a bigger consumer base, it’s claimed. Consumers can expand choice across a wider range of restaurants and other merchants. Delivery people – currently grossly underpaid – will more opportunities to earn income, with “increased batching of orders to make better use of their time.”
Following the closing of the takeover, Uber intends to keep the consumer Postmates app running separately, “supported by a more efficient, combined merchant and delivery network.”
Uber currently estimates that it will issue approximately 84 million shares of common stock for 100% of the fully diluted equity of Postmates. The boards of directors of both companies have approved the transaction, and stockholders representing a majority of Postmates’ outstanding shares have committed to support the transaction.
However, the takeover is subject to the approval of Postmates stockholders, regulatory approval and other customary closing conditions and is not expected to close until Q1 2021.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.