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Uber (UBER) Closes Postmates Acquisition, Expands Delivery Unit

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Uber Technologies, Inc. (UBER - Free Report) has completed its previously announced acquisition of Postmates Inc. The two companies are now in the process of integrating their U.S. operations.

The acquisition strengthens Uber’s delivery business, helping it widen its base in Los Angeles and the American Southwest, where Postmates had a strong base. At a time when Uber’s delivery business is already witnessing a boom, the buyout provides further boost.

While the coronavirus pandemic has caused a slowdown in Uber’s mobility business with people confining themselves to their homes, the same has boosted its delivery operations. The company has been seeing a significant rise in online order volumes from homebound customers. Notably, revenues and gross bookings from the Delivery segment surged more than 100% year over year in the third quarter of 2020.

Coming back to the transaction, while Postmates and Uber Eats apps will remain separate, it will be supported by a combined merchant and delivery network.

With regard to the closing of the transaction, Uber aims to cater to the needs of merchants by beginning a regional listening exercise across North America, next year. The initiative will provide merchants with the ability to provide feedback on products in development, policy decisions, etc.

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