Ride-hailing giant Uber Technologies Inc has reportedly agreed on a deal to buy food-delivery app Postmates Inc for $2.65bn in an all-stock agreement. The development was first reported by Bloomberg News on Sunday, citing people familiar with the matter.
According to the report, the deal has been approved by Uber’s board and might be confirmed soon. The report also added that Pierre-Dimitri Gore-Coty, head of Uber’s food delivery business, Uber Eats, is expected to continue to run the combined delivery business.
However, there has not been any confirmation from Uber and Postmates regarding the development.
Earlier last week, a report by Reuters had reported that Postmates had revived plans for an initial public offering following dealmaking in the U.S. online food delivery service sector that sparked acquisition interest in the company.
Postmates was last valued at $2.4bn when it raised $225mn in a private fundraising round last September.
Founded in 2011, San Francisco-based Postmates accounted for 8% of the U.S. meal delivery market in May, according to analytics firm Second Measure.
Uber had plans to also acquire Grubhub Inc through its UberEats business but walked away from the deal as Just Eat Takeaway.com NV eventually reached a $7.3bn agreement last month to buy the U.S. online food delivery company.
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