This report lands mid-arc for Uber's delivery ambitions: the company explored buying London-based Deliveroo back in 2018, made an offer for Grubhub in May 2020, and has been circling consolidation targets as its ride-hailing core sat depressed during the pandemic.
A deal announced within days would close out Uber's Grubhub pursuit by landing its second-choice asset at roughly the same price band (~$2.6B) it was reportedly discussing.
Second-order effects
DoorDash, one of Postmates' other suitors, is denied a consolidation route and faces a larger, better-capitalized Uber Eats competing on restaurant coverage and courier density in overlapping metros.
Walmart and other retailers that saw Postmates as a last-mile partner lose a potential exclusive alignment as Postmates folds into Uber's marketplace.
Third-order effects
If Uber's pattern holds — Deliveroo talks in 2018, Grubhub in 2020, Postmates now, and advanced talks for Delivery Hero reported in 2026 — U.S. and global food delivery consolidates around a handful of platform owners, raising the bar for independent players like Postmates was trying to be via IPO.
The trend: Food delivery is consolidating through serial platform acquisitions, with Uber repeatedly converting failed first-choice deals into purchases of second-choice assets.
Uber lost somewhere around $17 billion in the last 5 years, or about the GDP of Mali. So, naturally, it's planning to spend $2.6 billion to buy its competitor, Postmates. https://www.nytimes.com/...
Uber: “we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills...we shall never surrender our right to consolidate.” (Monopoly edition.) https://www.nytimes.com/...
No surprise that Uber is trying again to consolidate quickly — but can a Postmates deal pass regulatory scrutiny? Some I spoke with predicted Uber would go after Deliveroo instead. But Uber also thought Grubhub should have accepted its offer! https://twitter.com/...
I encourage people to read through Uber's earnings calls & pour over the financial data themselves. Take a shot if they create a new accounting regime to appear profitable. Take a shot if they introduce a new business line, exaggerate its growth, then pare down expectations. GG h…
Postmates, which has held discussions with other possible buyers since at least last year, has been simultaneously planning an IPO https://www.wsj.com/... via @WSJ
This is just what we need. More consolidation, bigger companies, fewer choices, less competition.. Wait. Sorry. That's exactly what we DON'T need. Blocking this is a no-brainer. https://twitter.com/...
NEW: Uber has made a takeover offer to buy Postmates as the on-demand food delivery market consolidates and Uber looks for new ways to make money. @MikeIsaac @eringriffith report https://www.nytimes.com/...
WSJ reporting that Uber plans to pay $2.6 billion for Postmates, or just slightly more than its most recent private valuation of $2.4 billion. https://www.wsj.com/...