# Uber acquires Postmates for $2.65 billion



## FormerTaxiDriver♧ (Apr 5, 2018)

Uber has acquired online food delivery service Postmates for $2.65 billion in stock, according to the _NY Times_ and _Bloomberg_. The deal is expected to help Uber better compete against food delivery giant DoorDash and will be a consolation prize after it failed to acquire GrubHub. The deal, first reported late in June, could be particularly valuable to Uber in Los Angeles and the US Southwest where PostMates is strong. Neither company has confirmed the reports, but are expected to do so later today.

Uber Eats and Postmates will be led by Uber Eats chief Pierre-Dimitri Gore-Coty, _Bloomberg_'s sources said. However, Postmates CEO Bastian Lehmann will reportedly remain to run Postmates as a separate service.

https://www.engadget.com/uber-buys-postmates-all-stock-deal-070647041.html


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## Trafficat (Dec 19, 2016)

To me it makes no sense to run them as separate services, at least from the driver end. Wouldn't using one app make it so Uber can coordinate drivers better for deliveries?

I'm glad Uber took over crappy Postmates and not Grubhub. I'd be sad to see GrubHub's driver friendly policies vanish.

Postmates gave delivery drivers a little more free will than Uber did in the user agreement, but the abysmal pay made Postmates not worthwhile.


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## SpinalCabbage (Feb 5, 2020)

I'd keep them separate if I was Dara. I refuse to use Uber Eats as I don't trust the drivers to not mess with the food. Even though I know the people doing Eats are generally the same people doing Postmates, Doordash, etc.. Perception is important in this industry. I had pizza delivered by Doordash recently. The guy got lost. I live on the same street as the pizza parlor. The guy had no gloves, no mask, and no thermal bag to keep my order hot. So I am not sure why I think they are any better than Eats. But I do.


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## SinTaxERROR (Jul 23, 2019)

For a company that is not remotely profitable, Uber seems to have a lot of cash it wants or has to burn...

However, I wouldn’t be surprised if both companies have many of the same investors... and if that is the case, the deal makes sense.


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## POKERLV (Jun 7, 2017)

Close up shop already Uber , most corrupt company in many many years . Will a cheeseburger have to wear a mask?


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## Who is John Galt? (Sep 28, 2016)

Trafficat said:


> To me it makes no sense to run them as separate services, at least from the driver end. Wouldn't using one app make it so Uber can coordinate drivers better for deliveries?


LOL. You don't seriously think they spend $2.65 Billion and approach these corporate manoeuvres looking from a driver's perspective, do you?

.


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## FormerTaxiDriver♧ (Apr 5, 2018)

If Uber+PM mirrors the tipping model of Doordash, then I will try Postmates out again.


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## 25rides7daysaweek (Nov 20, 2017)

SpinalCabbage said:


> I'd keep them separate if I was Dara. I refuse to use Uber Eats as I don't trust the drivers to not mess with the food. Even though I know the people doing Eats are generally the same people doing Postmates, Doordash, etc.. Perception is important in this industry. I had pizza delivered by Doordash recently. The guy got lost. I live on the same street as the pizza parlor. The guy had no gloves, no mask, and no thermal bag to keep my order hot. So I am not sure why I think they are any better than Eats. But I do.


I thinks its a well known fact that all food delivery drivers like to do the old
Dip your balls in the salsa trick....
Ill pick up my own thank you very much.


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## Johnny Mnemonic (Sep 24, 2019)

Anyone else thinks this sounds like big turd eats little turd?

Postmates was second runner-up after DoorDash and GrubHub gave Uber the finger.


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## Stevie The magic Unicorn (Apr 3, 2018)

The deal was in uber stock...

Frankly id rather get bought out in toilet paper... that's at least worth something...


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## Aharm (Aug 14, 2015)

Trafficat said:


> To me it makes no sense to run them as separate services, at least from the driver end. Wouldn't using one app make it so Uber can coordinate drivers better for deliveries?
> 
> I'm glad Uber took over crappy Postmates and not Grubhub. I'd be sad to see GrubHub's driver friendly policies vanish.
> 
> Postmates gave delivery drivers a little more free will than Uber did in the user agreement, but the abysmal pay made Postmates not worthwhile.


grubhub wants 12 billion ?


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## Launchpad McQuack (Jan 8, 2019)

Trafficat said:


> To me it makes no sense to run them as separate services, at least from the driver end. Wouldn't using one app make it so Uber can coordinate drivers better for deliveries?


I would imagine that, if they continue to operate Uber Eats and Postmates as separate services, then it will be similar to how GrubHub operates Seamless. Separate web sites, apps, etc. for the customers, but a single driver app to dispatch drivers. Most GrubHub drivers probably don't even know that they deliver Seamless orders.


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## jocker12 (May 11, 2017)

Stevie The magic Unicorn said:


> The deal was in uber stock...
> 
> Frankly id rather get bought out in toilet paper... that's at least worth something...


The discussion on YCombinator about this is quite interesting - https://news.ycombinator.com/item?id=23744114


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## Kurt Halfyard (Dec 13, 2017)

POKERLV said:


> Close up shop already Uber , most corrupt company in many many years . Will a cheeseburger have to wear a mask?


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## ABC123DEF (Jun 9, 2015)

Kurt Halfyard said:


>


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## jocker12 (May 11, 2017)

Here is more info coming from the paywalled -

https://www.theinformation.com/arti...ve-celebration-the-informations-tech-briefing
"Uber's 6% stock price rise on Monday suggests investors like the company's $2.65 billion acquisition of Postmates. And it is, in theory, a way to shore up Uber Eats' restaurant food delivery in some U.S. cities and consolidate the market.

But investors should curb their enthusiasm. Postmates' share of the U.S. market in recent years has fallen-it dropped to 7% from 12% just in the past year, according to Edison Trends. The combined Uber-Postmates will still trail DoorDash in market share nationally by a fair margin. Postmates filed IPO paperwork in February of last year but didn't pull the trigger, suggesting there wasn't much appetite for its shares.

Another issue: Uber has committed to providing bridge financing until the deal closes, which isn't expected until the first quarter of next year. That arrangement implies Postmates doesn't have much cash.

Perhaps Uber could have waited a bit longer and acquired Postmates on the cheap. And DoorDash, the market leader, now will get some of the benefit of the market's consolidation without paying a dime."


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## EM1 (Apr 28, 2019)

jocker12 said:


> Here is more info coming from the paywalled -
> 
> https://www.theinformation.com/arti...ve-celebration-the-informations-tech-briefing
> "Uber's 6% stock price rise on Monday suggests investors like the company's $2.65 billion acquisition of Postmates. And it is, in theory, a way to shore up Uber Eats' restaurant food delivery in some U.S. cities and consolidate the market.
> ...


Its equivalent to the flower/tulip mania in 1600s Netherlands. Guess we'll see how it plays out.









Tulip mania - Wikipedia







en.wikipedia.org


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## Wildgoose (Feb 11, 2019)

Trafficat said:


> To me it makes no sense to run them as separate services, at least from the driver end. Wouldn't using one app make it so Uber can coordinate drivers better for deliveries?
> 
> I'm glad Uber took over crappy Postmates and not Grubhub. I'd be sad to see GrubHub's driver friendly policies vanish.
> 
> Postmates gave delivery drivers a little more free will than Uber did in the user agreement, but the abysmal pay made Postmates not worthwhile.


It makes sense since they deactivated delivery drivers but they have to keep the drivers under another services. Also customers.
There are more reasons to do two seprate business names but owned by one company. If Uber tried to use only UberEat business name, some postmate customers will go to doordash and Grabhub. In the business, more than one business name is required to trick customers to choose.


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## FormerTaxiDriver♧ (Apr 5, 2018)

Wildgoose said:


> In the business, more than one business name is required to trick customers to choose.


Yes, just like Comcast and XFinity!


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## Tony73 (Oct 12, 2016)

SinTaxERROR said:


> For a company that is not remotely profitable, Uber seems to have a lot of cash it wants or has to burn...
> 
> However, I wouldn't be surprised if both companies have many of the same investors... and if that is the case, the deal makes sense.


Investors money


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## Mkang14 (Jun 29, 2019)

Trafficat said:


> To me it makes no sense to run them as separate services, at least from the driver end. Wouldn't using one app make it so Uber can coordinate drivers better for deliveries?
> 
> I'm glad Uber took over crappy Postmates and not Grubhub. I'd be sad to see GrubHub's driver friendly policies vanish.
> 
> Postmates gave delivery drivers a little more free will than Uber did in the user agreement, but the abysmal pay made Postmates not worthwhile.


I'm with you on that. Wish there was a turn postmates on or off option in the uber app. I might just do it &#128527;.

Maybe they want to allow those that were deactivated from uber to continue working with postmates (or vice versa)?

"So you were falsely deactivated for sexual harrassment? No problem, deliever these condoms &#128077;." Comes full circle.


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## kevin92009 (Sep 11, 2016)

SinTaxERROR said:


> For a company that is not remotely profitable, Uber seems to have a lot of cash it wants or has to burn...
> 
> However, I wouldn't be surprised if both companies have many of the same investors... and if that is the case, the deal makes sense.


It's fluff money , nothing more .


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## El Janitor (Feb 22, 2016)

I guess a great question is, how will they play this one out? Anyone who drives for Postmates and Uber Eats might have issues maybe? However if they do keep both services separate switching between Uber Eats and Postmates now might mean they know you did it.All they need to do is add a simple line of code to each app to tattle on you so they can put you in the 30 minute Uber Jail timeout for being, "Bad bad Uber driver!!!! NO no you cannot do things your way!!!!"


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## Andyi79 (Apr 10, 2020)

Used Postmates a few times and didnt used it again. The pay is abyssal, on average $3.5 to 4 per delivery. Meanwhile DoorDash pays nearly twice as much for orders and shows you how much your going to make before you accept a request with tips.


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## Stevie The magic Unicorn (Apr 3, 2018)

I actually think this was a great move on uber's part. The deal was for Uber Stock rather than cash. So one company that is losing money bought out another company that's losing money for stock, thus eliminating a competitor and (i would hope) reducing the choice of delivery apps and absorbing their business.


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## Alltel77 (Mar 3, 2019)

I'm already reaping the benefits of this purchase.


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## 40acres1mule (Jul 8, 2020)

1000+ uber eats requests & screenshotted only 1 would of paid me minimum wage after costs lmao so great another switch i can toggle on to ignore and degrade the system while laughing & smoking bowls like im stupid enough to go to mcdonalds & take someone a mcchicken 10 miles away for $3 gross

least eats shows details on uber gotta call screen to get info then cancel 9 outta 10 times because only grade school kids are impressed with $4 or should i say $2 after costs

uber losing billions, postmates losing billions lets team up. brilliant

99% of their workforce despises them & degrades the system / experience on purpose

this business is dead & not coming back for a long long time,no ones getting on planes soon, no live events, concerts, sports,conventions

& im pretty sure the delivery experience just gets worse & worse & that most people only use it when they get coupons or credits for suxh only an idiot pays 5 mcmchickens to get 1 delivered.

yes the delivery costs more than the tacos geniuses

buddha forbid they divied up that 2.8 billion and reimbursed the drivers they steal a minimum $5 per ride on so 99% of people who drive for them dont hate and talk bad about their treatment to pax, instead they begged to get bailed out while sitting on 8 billon cash 2 billion credits with zero paid into unemployment for a decade lol


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## LyftUberFuwabolewa (Feb 7, 2019)

Catch and kill


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## simont23 (Jul 24, 2019)

SinTaxERROR said:


> For a company that is not remotely profitable, Uber seems to have a lot of cash it wants or has to burn...
> 
> However, I wouldn't be surprised if both companies have many of the same investors... and if that is the case, the deal makes sense.


They didn't use cash. They gave them Uber shares. These new Uber shareholders will now flick them on ASAP while they still hold some value, and will be grateful to get that much for them.


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## goneubering (Aug 17, 2017)

jocker12 said:


> Here is more info coming from the paywalled -
> 
> https://www.theinformation.com/arti...ve-celebration-the-informations-tech-briefing
> "Uber's 6% stock price rise on Monday suggests investors like the company's $2.65 billion acquisition of Postmates. And it is, in theory, a way to shore up Uber Eats' restaurant food delivery in some U.S. cities and consolidate the market.
> ...


Dara was in a hurry to do a deal.


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## kevin92009 (Sep 11, 2016)

goneubering said:


> Dara was in a hurry to do a deal.


They say they're broke and cannot afford to classify people as employees because it would cost too much , Yet they could buy other businesses left and right every year


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