Uber, hungry for a deal, now reportedly in talks to acquire Postmates
Uber and Postmates declined to comment.
Uber’s attempts to pursue big, pricey acquisitions in the food delivery market highlight a fundamental shift for the company. Uber, which started as a ride-hailing service, has long dabbled in other categories, including meal deliveries with its Uber Eats service. But those efforts have arguably taken on new urgency as the pandemic has simultaneously cut demand for its core rides business while leading to skyrocketing demand for meal deliveries.
Uber Eats has been viewed as a bright spot for the company, especially as people increasingly stay at home.
There’s just one problem for Uber as it looks to bet more on food delivery: the market is incredibly crowded. That could make it harder — and more costly — for Uber to gain market share.