Uber buys Postmates in $2.65-billion all-stock deal

Uber finally got its food delivery company, acquiring Postmates in a $2.65-billion all-stock deal, the ride-hailing giant confirmed Monday.

Uber and its Uber Eats food-delivery division will gain ground against DoorDash, which controls about 37% of the U.S. food delivery market. That’s compared with Uber Eats’ 20% share before the Postmates deal. Grubhub holds around 30% of the U.S. food delivery market.

Last month, Uber lost out in a bid for Grubhub, which would have made it the dominant U.S. food-delivery service. But Amsterdam-based Just Eat Takeaway ended up nabbing Chicago’s Grubhub in a $7.3-billion deal. Uber was reportedly seeking to team Grubhub with its Uber Eats business.

The food delivery sector is undergoing a major consolidation this year, and further consolidation is expected. The number of people using food delivery services is on the rise because of the COVID-19 pandemic, but customers tend to jump around from service to service depending on where they can find the best deal.

Uber and Postmates are both based in San Francisco.