Decision Time for Postmates



Food Deliverer Weighs its Options


Food delivery company Postmates is weighing acquisition offers from a special purpose acquisition company and from Uber (UBER).

Postmates is the country’s fourth-largest food delivery company by market share. It has been particularly successful in urban centers like Miami and Los Angeles. Postmates had plans to IPO in February 2019, but it put them on hold due to difficult market conditions and harsh competition. The recent spike in food delivery sector deals encouraged the company to reevaluate.

Uber’s Offer


Uber (UBER) is offering to buy Postmates for about $2.6 billion. In early June, Uber was in talks about buying Postmates’ rival, Grubhub (GRUB), but the deal fell through and Grubhub was sold to Netherlands-based JustEatTakeaway (TKAYY).

Because only four companies dominate the food delivery sector in the US—DoorDash, Uber Eats, Grubhub, and Postmates—any combining of these companies could sound antitrust alarm bells. This was an issue with the Uber-Grubhub deal. Antitrust concerns could resurface if Uber moves forward with acquiring Postmates.

Help From a SPAC


Postmates is also considering going public with the help of a special purpose acquisition company, or a SPAC. A SPAC, also known as a blank-check company, acquires companies for the sole purpose of helping them transition to being publicly traded. The name of the SPAC offering to help Postmates make the leap has not yet been identified.

Demand for food delivery has soared during the pandemic. However, this has not resulted in increased profits for most companies. Competition in the sector is fierce and margins are slim. Investors are curious to see how the food delivery industry will fare this summer, especially given the fact that cases are on the rise in many states. All eyes will be on Postmates as investors wait to see what decision it will make and how that will impact the food delivery landscape.


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS070103


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.


TLS 1.2 Encrypted
Equal Housing Lender