CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

Uber looking to buy San Francisco food delivery start-up Postmates

By Lawrence Gash

15:15, 30 June 2020

Share this article
In this article:
UBER
Uber
33.17 USD
0.54 +1.660%
UBER
Uber
33.17 USD
0.54 +1.660%

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe

Uber is preparing an offer to buy San Francisco-based food delivery start-up Postmates.  

The deal, which has been in the works for several days, could be reached as soon as this week, according to people briefed on the matter. 

Uber is said to be trying to speed up the process because a private equity buyer was also competing to buy Postmates.  

Trade Uber Technologies Inc - UBER CFD

1m
5m
15m
30m
1H
4H
1D
1W

The takeover interest comes as Postmates appears to be accelerating preparations for a potential initial public offering, which some investors in the company previously said they would prefer to an acquisition. 

JPMorgan was leading the Postmates IPO process, said people briefed on the matter. 

XRP/USD

0.41 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00322

BTC/USD

23,369.25 Price
-0.200% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

US100

12,566.80 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0183%
Short position overnight fee 0.0071%
Overnight fee time 22:00 (UTC)
Spread 3.0

Oil - Crude

73.41 Price
-3.570% 1D Chg, %
Long position overnight fee -0.0223%
Short position overnight fee 0.0065%
Overnight fee time 22:00 (UTC)
Spread 0.03

Uber’s move on Postmates follows its failure to reach an agreement to buy another on-demand food player, Grubhub, last month. Grubhub was eventually bought by European company Just Eat Takeaway for $7.3bn (£5.9bn, €6.5bn) in stock. 

Postmates, which has about 1,000 employees, was valued at $2.4bn in its last funding round in September 2019. In addition to restaurant meals Postmates also couriers small goods.

Postmates has a smaller share of the US meal delivery market, with 8 per cent of sales in May versus Grubhub’s 23 per cent, according to Second Measure.  

According to a person involved in the talks, Uber’s acquisition of Postmates would face less regulatory opposition following Grubhub’s combination with Just Eat Takeaway.  

Rate this article

Share this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Economics headlines

Still looking for a broker you can trust?

Join the 480.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading