American multinational ride-hailing company, Uber Technologies, is acquiring Postmates, a San Francisco-based food delivery startup, for $2.65 billion, in an all stock deal.
Launched in 2011, Postmates is one of many on-demand delivery companies in the United States providing delivery from restaurants and stores that previously did not offer food delivery.
The acquisition deal is subjected to regulatory approvals and is expected to close in the first quarter of 2021. Uber said it is “committed to provide bridge financing to Postmates” as it waits for the process of obtaining regulatory approvals.
Postmates stockholders representing a majority of Postmates’ outstanding shares have committed to support the acquisition deal. Postman’s investors include Uncork Capital, Russell Cook, Naval Ravikant, Matrix Partners, David Wu, AngelPad, Tiger Global, Blackrock and Slow Ventures, among others.
Postmates, which accounted for 8% of the US meal delivery market, was last valued at $2.4 billion, when it raised $225 million in a private funding round, in September 2019.