Human cloud firm Uber Technologies Inc. (NYSE: UBER) announced Monday it is acquiring human cloud delivery firm Postmates Inc. for $2.65 billion in an all-stock transaction representing 84 million shares in common stock. The deal is set to close in the first quarter of 2021.
“This acquisition is going to allow us to drive continued growth, improve our operating efficiency and accelerate our path to profitability through this combination of Uber and Postmates’ scale, technology and complementary geographic strengths,” Uber CEO and Director Dara Khosrowshai said in a conference call.
Uber will combine the Postmates business with its Uber Eats business led by Pierre-Dimitri Gore-Coty, VP of Uber’s delivery business. Postmates’ app will continue to run separately, the company plans to combine the merchant and delivery networks.
The boards of both Uber and Postmates have approved the transaction, and Postmates shareholders representing more than 55% of outstanding shares have committed to approve the transaction.
Postmates had $643 million in gross bookings in the first quarter.
Uber CFO Nelson Juseuk Chai said Covid-19 has accelerated the push toward food delivery.