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Uber is reportedly trying to buy Postmates

It would create a food delivery behemoth.
Jon Fingas, @jonfingas
June 29, 2020
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Uber might have missed its chance to buy Grubhub, but it might not go away empty-handed. New York Times sources claim Uber has made an offer to buy Postmates. The talks are still in progress and aren’t guaranteed to lead to a union, but negotiations are reportedly close enough that a deal could be ready as soon as Monday night.

We’ve reached out to Uber for comment. Postmates declined to comment to Engadget on the rumor.

It’s no secret as to why Uber might want to buy Postmates. This would expand its food deliveries and help offset tanking demand for its core ridesharing business. It would also counter Just Eat’s acquisition of GrubHub. We’d add that the two companies are political allies — both are trying to thwart California’s gig worker law and keep their couriers as contractors rather than full employees.

For Postmates, a deal might be crucial. The company hasn’t fared as well against its heavyweight rivals, and Uber could either rejuvenate the brand or fold it into Uber Eats. While it wouldn’t be the independent success Postmates might have hoped for, it would be better than falling behind the better-financed competition.

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