Uber agrees deal to buy food delivery app
Published on: Tuesday, July 07, 2020
By: AFP
.jpg "Uber agrees deal to buy food delivery app")
An Uber office is seen in Secaucus. (File photo| AP - newindianexpress.com)
SAN FRANCISCO: Uber has agreed to buy food delivery app Postmates in a multibillion dollar deal, according to Bloomberg.The San Francisco-based rideshare giant has been badly affected by the coronavirus pandemic – cutting a quarter of its global workforce in May – and has been looking to boost its growing food delivery service Uber Eats.
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Bloomberg reported an expected $2.65 billion deal with start-up Postmates will be announced on Monday morning in the US, citing people familiar with the matter.
The deal would bolster Uber and help Postmates, a nine-year-old firm that has struggled against larger food delivery rivals, the New York Times has previously reported.
A $6 billion Uber offer this year to acquire Grubhub – another US food delivery app— - through. Grubhub was later bought by European competitor Just Eat Takeaway.
Uber said in its quarterly update earlier this year that it lost nearly $3 billion and its rides business was down some 80 per cent in April.
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