After the failure to acquire Grubhub, Uber is considering the acquisition of the competitor Postmates. The goal is to strengthen its Uber Eats food delivery service. All the details on maneuvers in a growing sector
Uber does not lose heart. After the nuanced acquisition of Grubhub (which preferred to join the European Just Eat), Uber made an offer to purchase Postmates, the fourth largest food delivery service in the United States by market share.
On the one hand, the coronavirus pandemic brought down Uber's ride sharing core business. But on the other hand, with the home-bound people, it has strengthened the Uber Eats home delivery service.
According to Cnbc , Postmates is considering, together with Uber's offer, that of another company in addition to the listing project. The decision is expected in the coming days.
In the meantime, rumors have pushed Uber stocks to Wall Street, where in the negotiations that precede the opening of trade, they rise by 3.1%.
THE OFFER FOR POSTMATES
According to an article in the New York Times, later confirmed by the Wall Street Journal , Uber made an offer to buy Postmates, a San Francisco-based food delivery company founded in 2011. The deal worth 2.6 billion dollars could be finalized this week, according to the WSJ .
STRENGTHEN UBER EATS
Uber is looking for ways to enhance its food delivery service, Uber Eats. The food delivery market has benefited largely from the Covid-19 pandemic. The latest quarterly report revealed that passenger transport activity is slowing down while food delivery service is growing. Gross booking revenue for the travel segment decreased 80% in April from the previous year. Unlike Eats' gross booking revenue, it increased by more than 50% to $ 4.68 billion.
SNOBBATA FROM GRUBHUB
At the beginning of the year, Uber attempted to purchase GrubHub, another US grocery delivery company. But the deal faded because of an antitrust check and GrubHub ended up agreeing to join the European Just Eat service (owned by Takeaway.com ) for $ 7.3 billion.
Sources close to Uber have confirmed to TechCrunch that regulatory concerns have sunken the company's offer for GrubHub.
There are four players in the food delivery market in the United States at the moment – DoorDash, Uber Eats, GrubHub and Postmates – and any consolidation could raise antitrust concerns. But Postmates, with a valuation of $ 2.4 billion, is significantly smaller than GrubHub.
WHAT POSTMATES WILL DO
According to the New York Times, Postmates had previously argued to join competitors such as DoorDash and GrubHub. In February 2019, the company submitted the application to go public, but in the end it gave up citing conditions of "unstable market". However, sources close to the company report that the listing still remains an option.
HOW THE FOOD DELIVERY MARKET WOULD CHANGE
If the merger with Uber were successful, the food delivery market in the United States would be configured as follows: Uber Eats and Postmates against Grubhub and Takeaway against DoorDash.
If Uber Eats and Postmates combined, the result would still be lower than Doordash's market position (valued at $ 13 billion), but would still be competitive.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/uber-eats-grubhub-e-postmates/ on Tue, 30 Jun 2020 13:25:39 +0000.