Market Overview

Uber Makes Takeover Bid To Rival Food Delivery Business Postmates: Report

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Uber Makes Takeover Bid To Rival Food Delivery Business Postmates: Report

Uber Technologies Inc. (NYSE: UBER) has made an acquisition offer to food delivery service Postmates, the New York Times reported late Monday.

Uber's Second Food Delivery Takeover Bid

An agreement between the two companies could have been reached as soon as Monday evening, according to the Times. The terms of the deal are unknown at press time.

Uber was last reported to have made an acquisition offer to GrubHub Inc. (NYSE: GRUB), which was ultimately taken over by Just Eat Takeaway.com N.V. (OTC: TKAYF) at a valuation of $7.3 billion.

The San Francisco-based company's own food delivery business Uber Eats has seen a surge during the novel coronavirus (COVID-19) pandemic, even as the primary ride-hailing business suffered.

Postmates Revives IPO Plans

Reuters separately reported that Postmates had revived the plans for its initial public offering, and the registration could be made public as early as July.

The San Francisco-based company had confidentially filed to go public in February. The IPO plans of a majority of companies in the United States were shelved at the time as COVID-19 brought economic uncertainty.

A host of companies, including the Warner Music Group Corp. (NASDAQ: WMG) and ZoomInfo Technologies Inc. (NASDAQ: ZI), have successfully gone public over the last month, as coronavirus-related lockdowns eased across the country.

Postmates was last valued at $2.4 billion by investors in September last year, as noted by Reuters.

Price Action

Uber shares closed slightly up at $29.63 on Monday and added another 0.5% in the after-hours session at $29.77.

 

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Posted-In: Food Delivery Postmates Reuters The New York TimesM&A News Tech Media Best of Benzinga

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