Uber missed out on its interest to buy Grubhub, but it might not have lost all hope to buy another company. New York Times sources revealed that Uber has made a move to buy Postmates.
Talks between both sides are currently 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 on the rumor as Postmates declined application to get comment from them.
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.