Uber Technologies has agreed to acquire restaurant delivery service Postmates in a $2.65 billion all-stock deal, the company announced Monday. "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," said Uber CEO Dara Khosrowshahi. Uber Eats head Pierre-Dimitri Gore-Coty is expected to run the combined business, although Postmates CEO Bastian Lehmann will continue to manage Postmates as a separate service, one Bloomberg source said. The acquisition will help Uber compete with DoorDash, the leader of the food delivery market in the United States. Postmates will give Uber Eats a stronger position in Los Angeles and the Southwest. Uber and Postmates had discussed a deal on and off for four years, but the talks picked up after Uber's failed bid for GrubHub.

Scroll for 5 things you
need to know now