Uber Plans to Buy food delivery company Postmates for $2.65 billion


If the Coronavirus pandemic has shown us anything it is that food delivery services are set for a boom time as isolation becomes the new normal. One of the major players in the provision of food to homes is UberEats, which is about to grow in size to become the second-largest deliverer of food behind DoorDash but ahead of GrubHub. The growth of the food sector of the ride-sharing company comes with the purchase of the PostMates service that has been delivering food throughout the Southwest since 2011. As ride-sharing has been hit by the widespread nature of the COVID-19 outbreak in major metropolitan centers around the world, Uber’s revenue in this area has fallen by around 53 percent.

The $2.65 billion purchase of the food service was announced by Uber on July 5th as the company looked for different ways of expanding its abilities to deliver food to its customers. PostMates may not have been the largest entrant in the sector, but it has always been seen as one of the most innovative members of the industry. Among the innovations from the company that holds a market share in Phoenix, Arizona and other parts of the Southwest. UberEats has become the dominant force for the ride-sharing giant and holds the largest market share in Los Angeles and Orange County.

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