Uber Announces Completion of Postmates Purchase
It’s official: Postmates is now owned by Uber. This comes after the ride-sharing company announced a $2.65 billion all-stock acquisition of Postmates back in July. The result of the deal closing is one of the largest delivery services in the United States, second only to DoorDash.
According to Engadget, Uber intends to keep Uber Eats and Postmates as separate brands while still integrating them on the backend, meaning a combined pool of delivery drivers. As a result, Uber says it hopes to “create an even stronger delivery marketplace to benefit consumers, delivery people, and—in particular—the hundreds of thousands of merchants who use our platforms to grow their businesses.”
To that point, the company has announced that it will launch what it calls a regional listening exercise. These events will first be held virtually but will move to an in-person model once it is safe to do so. During each session, restaurants and Uber will discuss policies, pricing, and various issues facing the industry. Those interested in such a dialog can currently register on the company’s listening sessions site.
In a press release announcing the completed transaction, Head of Uber Eats US & Canada Stephane Ficaja wrote, “Both Uber Eats and Postmates have long been leaders in third-party delivery marketplaces, setting an example of respected business practices, a commitment which will be strengthened as one. Together, we’re committed to raising standards across the industry and doing right by partners.” Ficaja continued, “Going forward, this means helping merchants grow their businesses, and providing them with the tools and products they need to reach their customers on their own terms. We believe merchants deserve transparency in contracts and pricing structures and control over how they choose to partner with us—and we’re committed to giving them that control.”
While restaurant owners and delivery drivers may have concerns about the merging companies, there may be some advantages for select consumers. For one, American Express Platinum cardholders who earn $200 in Uber credits each year (and, soon, Gold cardholders who will enjoy $10 in Uber credits per month) may soon be able to utilize their Uber Cash at an expanded roster of locations. Of course, it remains to be seen just how much overlap the two platforms will have or if Uber credits may even be used across either app.
With many independent restaurants currently catering more to take out and delivery orders than ever before, Uber’s acquisition of Postmates arrives at a very interesting time. On that note, while some business owners may be wary about what this means for this part of the operations, hopefully Uber’s openness to discussion isn’t just for show. As always, only time will tell whether this deal proves fruitful for all involved.