Uber, the $54-billion-dollar ridesharing company whose Uber Eats app has surged in popularity during the pandemic, is trying to buy Postmates, reports the New York Times. The move comes after Uber failed to acquire Grubhub.
Uber’s offer is reportedly $2.6 billion, which may be a reflection of Postmates’ 8 percent nationwide market share in the food delivery business. DoorDash leads the pack with 45% market share, with Uber Eats and Grubhub both controlling 22% of the market.
As Uber’s traditional ride sharing business has plummeted during coronavirus, the food delivery side has surged, with orders increasing by 54$ throughout Covid-19. The company’s CEO, Dara Khosrowshahi, has called food delivery the “next enormous growth opportunity” for Uber.
It remains to be seen how consumers will be affected by the recent consolidation in the food delivery app business. Until now, Uber Eats has been enticing new customers with referral codes offering significant savings to first-time users. As the number of competitors dwindles, it’s likely that UberEats and its rivals will scale back their aggressive market-share tactics.