Uber, the ride service, has bought Postmates, the food delivery app, in a $2.65 billion all-stock takeover. The food delivery applications have been trendy in recent years. The total value of the food market in the world is close to $9.5 trillion. In contrast, the food delivery market contributed to just 1% of the market ($100 billion).
Postmates was already popular in the US and was frequently used as a food delivery option by Americans, especially during the lockdown. However, many other apps received much more attention than Postmates, namely, GrubHub, DoorDash, and even Uber owned UberEats was more popular than Postmates.
UberEats was launched by Uber Technologies in August 2014, as an extension to their pickup service. Ever since then, it has become a part of American’s choice of food delivery. In June, the UberEats division rose to 53%, which was a huge bump considering Uber lost billions of dollars for the first time in three months in May.
Postmates will still work as a separate service from Uber, with Postmates’ CEO and team working and managing it on their own.
Infographic by: benzinga.com