Uber buys Postmates, ups delivery game in $2.65 billion deal

[Omaha Steve]

Source: AP

By MATT OTT and CATHY BUSSEWITZ

SILVER SPRING, Md. (AP) — Uber has widened its reach in the fiercely competitive delivery market by acquiring Postmates in a $2.65 billion all-stock deal, the company said Monday.

The acquisition enables the ride-hailing giant to increase its delivery offerings at a time when the global pandemic has suppressed customers’ desire for rides while boosting home delivery needs. While Uber’s meal delivery business, Uber Eats, has mostly focused on restaurants, Postmates delivers a wider array of goods including groceries, pharmacy items, alcoholic drinks and party supplies.

“The vision for us is to become an everyday service,” said Dara Khosrowshahi, CEO of Uber, in a conference call with investors Monday. “Postmates is a great step along that vision. Anyplace you want to go, anything you want delivered to your home, Uber is going to be there with you, and we think these everyday frequent interactions create a habit, create a connection with customers.”

Uber and its Uber Eats food-delivery division will gain ground against DoorDash, which controls about 37% of the U.S. food delivery market. That’s compared with Uber Eats’ 20% share before the Postmates deal. Grubhub holds around 30% of the U.S. food delivery market, according to Second Measure, a data analysis company.



FILE - In this May 15, 2020 file photo, an Uber sign is displayed inside a car in Chicago. Uber finally got its food delivery company, acquiring Postmates in a $2.65 billion all-stock deal, the ride-hailing giant confirmed Monday, July 6. (AP Photo/Nam Y. Huh, File)


Read more: https://apnews.com/555231c0f70c9767382f75a3da4f2c32

[Bernardo de La Paz]

1. Double post

[Omaha Steve]

3. Fixed it

I don't know why the system keeps doing that to me.

[Brainfodder]

2. UPS had a delivery game and sold it for 2.65B?

Bad first read of title.

[marybourg]

4. I kept reading, looking for what UPS

hed to do with this deal.

[bucolic_frolic]

5. Truly

I must live in a time warp. Other than USPS, a couple FedEx, and an occasional UPS delivery, I've never had anything delivered to me. Food? Are you insane? What can Uber deliver that the others can't?

[marybourg]

6. Freshly made restaurant meals.

[ProfessorGAC]

7. An All Stock Deal!

Uber is showing net income TTM of negative $8.8 billion.
2019 net income was negative $8.6 billion.
So since TTM includes 6 months of 2020, their net income has not improved in a year they claimed would be the year they would be profitable.
Their cash flow as a percent of sales is 29%. IOW, they are borrowing $29 to cover expenses above every $100 they make.
They claim $10 billion in cash, but the cash flow numbers suggest they're sitting on borrowed money.
Stock value is all they've got.

[madville]

8. I deliver for Uber and DoorDash after work and on weekends

Interested to see how it plays out. Uber's App and system is way better in my opinion, tend to get better pay and tips through Uber as well. DoorDash is busier though so it kind of evens out.

It's not a bad gig for anyone with some spare time, I gross about $1200 extra a month, after expenses, taxes, etc I net about $800 for 50 hours of work over a month.