- Uber announces it will buy delivery app Postamtes in a $2.65 billion all-stock deal
- “Q2 bookings on Uber Eats are up more than 100 percent year on year,” Uber’s CEO notes
- Uber stock price up over 8% in premarket trading on news
Shares of Uber (NYSE: UBER) are trading around 9% higher in premarket on reports that the ride-hailing firm agreed to buy delivery app Postamtes in a $2.65 billion all-stock deal. Uber share price is now looking to erase losses from the last week when it closed over 8.3% in the red.
Fundamental analysis: All-stock deal agreed
Uber has agreed to buy Postmates, a popular food-delivery app, in a $2.65 billion all-stock agreement. The deal, which was first reported by Bloomberg on Sunday evening, was then confirmed by the ride-hailing company today. Invezz reported last week that Uber is in talks to buy Postmates.
“Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery—they can be a hugely important part of local commerce and communities, all the more important during crises like COVID-19,” said Uber CEO Dara Khosrowshahi.
Uber has moved quickly from a failure to close a deal to buy Grubhub (NYSE: GRUB). Invezz reported last month that the food delivery company accepted a $7.3 billion all-stock offer from European food-ordering firm Just Eat Takeaway.com NV (AMS: TKWY).
“As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100 percent year on year. We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country,” he added.
Pierre-Dimitri Gore-Coty, who heads the UberEats business, will run the combined delivery business. The deal will help UberEats boost its food-delivery market share. According to analytics firm Second Measure, Postmated held 8% of the U.S. food-delivery market in May.
Last September, Postmates raised $225 million in fundraising that valued the food-delivery app at $2.4 billion.
Technical analysis: Uber share
Uber share price is trading more than 8% higher on Postmates news. Shares of the ride-hailing firm have now erased almost all losses from the last week when it dipped over 8.3%.
The buyers are now likely to seek an extension of this bullish run, with the $38 as a next potential target. This is a 4-month high for the Uber stock and the highest Uber shares traded since the pandemic started.
But first, Uber bulls will have to close above $31.26, which is a home to the 200-DMA. In that case, the door would be open for more investors to come in and buy shares of Uber, aiming for $38.
Uber stock price has gained around 8% in premarket trading on news that the ride-hailing giant agreed an all-stock deal to buy the food-delivery app Postmates for $2.65 billion.