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Uber Makes Offer to Buy Postmates Delivery Service

  • June 30, 2020

The value of the takeover offer was not clear Monday evening.

While Postmates saw early popularity in coastal cities — especially Los Angeles — the company has struggled to compete with much larger competitors like DoorDash, GrubHub and Uber Eats. In February, Postmates confidentially filed to go public.

The category has been ripe for consolidation. Uber held merger talks this year with GrubHub, a food delivery competitor. But those talks fell apart after the two companies could not come to agreement on a price, two people familiar with the matter said. GrubHub was eventually bought by Just Eats, a European food delivery service, for $7.3 billion in June.

Shortly after the GrubHub deal fell through, Uber began to piece together a potential offer for Postmates, one of the few stand-alone American companies in food delivery.

Postmates also held sale talks with DoorDash and GrubHub over the last year, according to two people with knowledge of the situation, who declined to be identified because the talks were private.

Postmates was created in 2011 by Sam Street, Sean Plaice and Bastian Lehmann, who is the chief executive. It managed to capture the hearts of Hollywood, with endorsements from celebrities like Kylie Jenner and the singer John Legend. It even scored an investment from the actor Jared Leto.

Article source: https://www.nytimes.com/2020/06/29/technology/uber-postmates-buy-offer.html

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