Global ridehailing firm Uber is buying food delivery company Postmates for US$2.65 billion (£2.1 billion) to further strengthen its Uber Eats subsidiary.
The company says the two businesses are highly complementary, with differentiated geographic focus areas and customer demographics. Uber adds that Postmates has strong relationships with small- and medium-sized restaurants, “particularly local favourites that draw customers to the Postmates brand”.
Analysts at CNBC say Uber is banking on food delivery to help sustain its business during the coronavirus pandemic, as demand for ride-sharing has plunged. In its first-quarter earnings call, Uber said gross bookings revenue for its rides segment was down 80% in April from a year earlier, while gross bookings revenue in eats was up more than 50% during the period.