Uber acquires Postmates for $2.65 billion

Uber has reached an agreement to acquire food delivery service Postmates for $2.65 billion, the companies announced Monday.

The deal will help Uber grow its food delivery service, Uber Eats, one of the ride-hailing giant’s sole growing ventures during the coronavirus pandemic.

Food delivery has soared in popularity in the first half of 2020 as the pandemic keeps many Americans home.

However, profits have remained elusive, leading several companies in the space to consider consolidation.

Uber had reportedly engaged in discussions to acquire GrubHub, which was ultimately sold to European company Just Eat Takeaway.

Postmates is one of the smaller food delivery companies in America, with its market share trailing GrubHub and fellow competitor DoorDash.