Uber’s $2.7 Billion Postmates Order 📩

Table of Contents

Uber’s $2.7 Billion Postmates Order 

Postmates is a courier service – you pay them to pick up your shopping for you so that you can stay at home. Uber, well, you know Uber, the world’s biggest ride-hailing app, among other things. 

Uber has agreed to acquire Postmates for $2.7 billion (plus a tip, plus a service fee!). It’s an all-stock deal that’s expected to close in the first quarter of next year, pending regulatory approval*.

The deal is great for Postmates. The firm was tipped for an initial public offering this year, but insiders agitated about new rivals invading its market. The business was running out of puff, and money, but worth more to Uber alive, than dead. It will help Uber Eats expand. This is all about consolidation, and adding around 8% to Uber Eats’ market share.

This merger will put Uber Eats and DoorDash neck and neck in a two-horse race to dominate food delivery, both with around 45% market share. It’s a duopoly in the making. The regulators will raise an eyebrow, and consumers wail in despair (potentially predatory service fees on the way), but demand won’t abate for these types of services.

There was even a rumored merger between Uber Eats and DoorDash last year. This would have been impossible to get through antitrust; food delivery would have become a total monopoly, and Masa Son of Softbank, who funds both of these companies, said “no.”

The question now is whether regulators say “no” to this domination game in the making. If they do, Uber stock is coming back down 10%, and Postmates is probably going public sooner rather than later. It would be a third wheel in the industry, and a potential short candidate unless DoorDash moves in for it. Be ready!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.