According to the Times, negotiations are still ongoing, and the deal could fail.
For those who paid attention to Uber, this appetite is not new, although it is consistent. A little over a month ago, a bicycle company was reportedly about to acquire Grubhub, another food delivery company. Grubhub was ultimately acquired by Just Eat Takeaway in $ 7.3 billion dealbut only after the deal with Uber failed due to many problems.
The food delivery market benefited mainly from the COVID-19 pandemic, as stores remain closed or only switch to export. Recent earnings from a public horse company show that its racetrack business is slowing and its food delivery service is growing like hellGross orders for Uber Eats were $ 4.68 billion last quarter.
So although Uber is still losing a ton of money ($ 2.94 billion, including all expenses), its growth of Uber Eats is staggering. And green shoots can fuel some interest in other competitors.
If regulatory issues were a problem, Postmates maybe better.
So if Uber eats and Postmates together, the result will still be less than that of Doordash, but, nevertheless, will be competitive. DoorDash, last valued at $ 13 billion, has privately filed an IPO almost four months ago.
Also, Postmates delivers more than just food.
Postmates declined to comment on rumors or speculation. Uber did not immediately respond to a request for comment.