SAN FRANCISCO — Uber has made a takeover offer to buy Postmates, the upstart delivery service, according to three people familiar with the matter, as the on-demand food delivery market consolidates and Uber looks for new ways to make money.
The two companies could reach a deal as early as Monday evening, according to the people, who spoke on the condition of anonymity because they were not authorized to do so publicly. The talks are still going on, the people cautioned, and any potential for a deal could fall apart.
Representatives of Uber and Postmates declined to comment on any potential deal talks.
A tie-up could bolster Uber’s delivery business, Uber Eats, and help it compensate for the cratering of its core ride-hailing business, which has collapsed in many cities because of the coronavirus pandemic. Food delivery is not profitable, but demand has soared while restaurants are closed and people are staying at home.
The deal would also be a lifeline for Postmates, a nine-year-old company that was one of the earlier start-ups to harness the power of the smartphone and the nascent “gig economy” to offer city dwellers a courier service that could deliver anything at the tap of a button.
The value of the takeover offer was not clear Monday evening.
This is a developing story. Check back for updates.