The deal confirms consolidation expectations in the sector
Uber has entered into an acquisition of its competitor in the food delivery market represented by Posmates from San Francisco. The fourth largest player in the US market will be acquired for $ 2.65 billion as part of a transaction that will be fully paid for in shares. In September 2019, when Postmates raised $ 0.9 billion from private investors, the company was valued at $ 2.4 billion.
The purchase will allow Uber Eats to increase its presence in Los Angeles, Miami and Phoenix, but will not help the company in New York, Chicago and San Francisco, where it competes with DoorDash. The share of the last company in the US market is about 45%, while the share of Uber taking into account the takeover of Posmates, according to Edison Trends, will grow to 37%.
For several months, Uber has been trying to increase its market share, but until recently, the company could not succeed. In January, the Financial Times reported that negotiations on a merger with Door Dash, which is now valued at $ 16 billion and is about to go public, ended in nothing. Uber tried to buy Grubhub last month, but lost the fight to European Just Eat Takeaway, which offered $ 7.3 billion.