3 Reasons Uber's Pursuing Postmates After Being Turned Down by Grubhub
Uber Technologies (NYSE: UBER) was not too happy when Grubhub (NYSE: GRUB) decided to sell its business to Just Eat Takeaway. The two had been discussing a merger, and had reportedly come to an agreement on an all-stock price. Just Eat Takeaway offered a similar price, however, and Grubhub's owners felt the partnership made for a better exit.
Uber certainly had the resources to outspend Just Eat Takeaway, but it decided to let the deal go. It instead focused on a smaller competitor in the U.S. food delivery space: Postmates. Uber has agreed to acquire Postmates for $2.65 billion in an all-stock deal.https://investor.uber.com/news-events/news/press-release-details/2020/Uber-to-Acquire-Postmates/default.aspx
Postmates had just an 8% market share in May, according to data from Second Measure. But the smaller delivery service can offer a lot of the same benefits the potential Grubhub acquisition offered, and it has a few meaningful advantages as well.
Source Fool.com
