SAN FRANCISCO – Uber has made a takeover bid to buy Postmates, the new delivery service, according to three people familiar with the matter, as the grocery delivery market consolidates and Uber looks for new ways to make money.
The two companies could reach an agreement as early as Monday night, according to people, who spoke on condition of anonymity because they were not authorized to do so publicly. The talks are still going on, people warned, and any potential for a deal could crumble.
Representatives for Uber and Postmates declined to comment on possible settlement talks.
A deal could bolster Uber’s delivery business, Uber Eats, and help offset the crater of its core passenger transportation business, which has collapsed in many cities due to the coronavirus pandemic. Food delivery is not profitable, but demand has skyrocketed while restaurants are closed and people stay home.
The deal would also be a lifeline for Postmates, a nine-year-old company that was one of the first companies to harness the power of the smartphone and the nascent “concert economy” to offer city dwellers a messaging service that could offer anything at the touch of a button.
The value of the takeover bid was unclear Monday night.
This is a developing story. Check back for updates.
