Uber on Tuesday said it has completed its $2.65 billion acquisition of delivery service Postmates. The all-stock deal, which was , will help boost Uber's growing efforts in the delivery of groceries, essentials and other goods.
The Postmates and Uber Eats apps will continue to run separately but will be supported by a combined merchant and delivery network, the company said
"Uber and Postmates have long been committed to powering delivery services that support local commerce and communities, all the more important during crises like the one we face today," said Uber CEO Dara Khosrowshahi in a release. "We're thrilled to bring these two teams together to continue to innovate, bringing ever-better products and services for merchants, delivery people, and consumers across the country."
In July, Khosrowshahi said Uber Eats orders were up more than 100% since the same period last year as people looked to delivery and pickup service amid the ongoing coronavirus pandemic. At the same time, Uber's rides business has suffered during the pandemic with its ride volume down by as much as 80% in mid-April. After laying off thousands of employees in May, the company said it was going to shutter several of its side projects and focus more on just delivery and rides.