--- title: "Uber Acquires Postmates’ Food Delivery Business for a Whopping $2.65 Billion" id: "9077" type: "post" slug: "uber-acquires-postmates-food-delivery-business" published_at: "2020-07-08T05:52:00+00:00" modified_at: "2025-09-02T13:29:02+00:00" url: "https://locus.sh/blogs/uber-acquires-postmates-food-delivery-business/" markdown_url: "https://locus.sh/blogs/uber-acquires-postmates-food-delivery-business.md" excerpt: "Uber marks its territory in US food delivery market, brands could see competition rise. Know how tech-based logistics help to earn last-mile efficiencies." taxonomy_category: - "News" taxonomy_post_tag: - "Food delivery business" - "Food Delivery Supply Chain" - "Uber" --- #### [News](https://locus.sh/blogs/category/news-en/) # Uber Acquires Postmates’ Food Delivery Business for a Whopping $2.65 Billion [Team Locus](/author/team-locus/) Jul 8, 2020 3 mins read ## Key Takeaways - Uber’s $2.65 billion acquisition of Postmates will secure approximately 30% of the US food delivery market, significantly consolidating the competitive landscape. - Despite the merger, Uber plans to maintain Postmates as a separate app while enhancing its operations through Uber’s routing, dispatching, and dynamic pricing technology. - The COVID-19 pandemic has permanently shifted consumer behavior toward on-demand delivery services, making efficient last-mile delivery capabilities essential for business success. - Locus’s AI-powered logistics solutions help enterprises optimize their hyperlocal delivery operations to meet increasing consumer demands for fast, reliable service. As Uber marks its territory in the US food delivery market, brands could see competition intensifying in the days to come. Multinational ride-hailing giant Uber has agreed to acquire Postmates, America’s leading food and grocery delivery provider, for a whopping [$2.65 billion](https://techcrunch.com/2020/07/06/uber-takes-out-postmates/amp/?utm_campaign=fullarticle&utm_medium=referral&utm_source=inshorts&guccounter=1) . The all-stock deal, subject to regulatory approval, would give Uber roughly 30 percent share of the US food delivery market, according to analytics firm Second Measure. Postmates is an on-demand delivery service that allows users to request deliveries of all types, including food, groceries, and alcohol from local stores and restaurants. The company operates in about 2,940 US cities. Postmates currently stands fourth in the US on-demand delivery market, with competitors like Caviar, Freshly, DoorDash, Deliveroo, GrubHub, and Instacart in the play. Uber’s Postmates acquisition is expected to increase its world’s food delivery market share. Uber and Postmates were reportedly having discussions about the deal on and off for about four years, but the talks accelerated after Uber recently approached the latter. Both company’s boards have approved the deal, for which Uber currently expects to issue about [84 million shares](https://www.dawn.com/news/1567506) of common stock. However, this does not change much for consumers. Uber said that it plans to keep the Postmates app running separately, supported by a more efficient, combined merchant and delivery network. Uber also plans to leverage its marketplace technology, including routing, dispatching, and dynamic pricing, to improve Postmates’ last-mile delivery operations. The pandemic is dramatically transforming food, groceries, and restaurant supply chains, bringing a whole new dimension of convenience into the picture. As more and more consumers seek professional and [on-demand hyperlocal delivery of groceries](https://locus.sh/blogs/last-mile-delivery-route-optimization-for-online-grocers/) , fresh fruits, veg, readymade food, and even alcohol, big brands like Uber are making the most of this opportunity to grab a larger share in the market. Needless to say, businesses in the food and grocery delivery and hyperlocal markets must brace themselves for the heavy competition from bigger brands like Uber in the future. The biggest market success driver is excellent customer service, which can be achieved quickly, on time, and professionally[.](https://locus.sh/blogs/importance-of-last-mile-delivery-services-post-coronavirus/) [https://locus.sh/blogs/importance-of-last-mile-delivery-services-post-coronavirus/](https://locus.sh/blogs/importance-of-last-mile-delivery-services-post-coronavirus/) The pandemic may drift away, but the impact it is causing on [consumer buying behavior](https://locus.sh/resources/us-grocery-market-trends-covid-19/) will linger around for a long time now. Efficient doorstep delivery is more critical than ever before now, and brands cannot overlook the importance of tech-based logistics in achieving desired last-mile efficiencies. Locus offers AI-driven tech solutions to enterprises in the hyperlocal delivery market for efficient logistics management. Click here for a [free demo](https://locus.sh/#schedule-demo) . MEET THE AUTHOR Team Locus Written by the Locus Solutions Team—logistics technology experts helping enterprise fleets scale with confidence and precision. ### Related Tags: [Food delivery business](https://locus.sh/blogs/tagged/food-delivery-business/) [Food Delivery Supply Chain](https://locus.sh/blogs/tagged/food-delivery-supply-chain/) [Uber](https://locus.sh/blogs/tagged/uber/) [https://locus.sh/blogs/locus-product-updates-june-releases-summary/](https://locus.sh/blogs/locus-product-updates-june-releases-summary/) #### [Tech and Product](https://locus.sh/blogs/category/tech-and-product-updates/) ## [What’s new @ Locus – Enterprise SSO, Locus 2.0, Homebase clubbing, and more…](https://locus.sh/blogs/locus-product-updates-june-releases-summary/) [Team Locus](https://locus.sh/blogs/author/team-locus/) Jul 3, 2020 What’s new @ Locus Key Takeaways The first half of 2020 has definitely tested the robustness of the health of both people and processes in supply chains. Together we have faced changing regulations, demand, and disruptions to our supply chain. And Locus is fully committed to ensuring that you get the best route plans, live […] [Read more](https://locus.sh/blogs/locus-product-updates-june-releases-summary/) [https://locus.sh/blogs/supply-chain-control-tower-importance-in-modern-logistics/](https://locus.sh/blogs/supply-chain-control-tower-importance-in-modern-logistics/) #### [Blog](https://locus.sh/blogs/category/blog/) ## [Why is a supply chain control tower important for a modern logistics business?](https://locus.sh/blogs/supply-chain-control-tower-importance-in-modern-logistics/) [Lakshmi D](https://locus.sh/blogs/author/lakshmilocussh/) Jul 10, 2020 Key Takeaways Gaining visibility into real-time on ground operations has become a major priority for logistics businesses. On ground situations are always changing, be it traffic, or last-minute maintenance issues, order cancellations, etc. On top of it, on-demand customer requests keep coming in. A central hub for all things logistics is the need of the […] [Read more](https://locus.sh/blogs/supply-chain-control-tower-importance-in-modern-logistics/) ## Uber Acquires Postmates’ Food Delivery Business for a Whopping $2.65 Billion - Share - [Print](javascript:window.print()) - [Download](#) - [Schedule a Demo](https://locus.sh/schedule-demo/) ### Is your team spending more time on fixing logistics plan than running the operation? - Agentic transportation management from order intake to freight settlement - Route optimization built on 250+ real-world constraints - AI-driven dispatch with automatic execution handling 20%Cost Reduction 66%Faster Planning Cycles [Schedule a demo](/schedule-demo/) Insights Worth Your Time #### [General](https://locus.sh/blogs/category/general/) ## [Locus 2026 US Consumer Survey: Generative AI isn’t Just Changing How Consumers Shop, it’s Breaking the Demand Patterns US Retail Was Built On](https://locus.sh/blogs/generative-ai-shopping-effect-retail-fulfillment-operations-locus-q2-2026-consumer-survey/) [Ishan Bhattacharya](https://locus.sh/blogs/author/ishan_locus/) May 29, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [Embedded vs Bolted-On AI: The Architecture Question European Logistics Buyers Are Asking](https://locus.sh/blogs/embedded-vs-bolted-on-ai-european-logistics-platform-architecture-business-benefits/) [Aseem Sinha](https://locus.sh/blogs/author/aseem_locus/) May 21, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [Hybrid Fleet Management: How Owned, 3PL, Gig, ICE, and EV Capacity Actually Operate at Most Enterprises](https://locus.sh/blogs/three-workforce-fleet-reality-owned-3pl-gig-drivers/) [Aseem Sinha](https://locus.sh/blogs/author/aseem_locus/) May 7, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [US Returns Hit $850 Billion in 2025: Why US Retailers Are Restructuring Reverse Logistics in 2026](https://locus.sh/blogs/850-billion-us-returns-ai-routing-reverse-logistics-2026/) [Ishan Bhattacharya](https://locus.sh/blogs/author/ishan_locus/) May 7, 2026