Uber is reportedly buying Postmates

(Image credit: CHRIS DELMAS/AFP via Getty Images)

Uber Technologies has agreed to acquire restaurant delivery service Postmates in a $2.65 billion all-stock deal, Bloomberg reported Monday, citing people familiar with the matter. The takeover is expected to be announced as soon as Monday morning, according to Bloomberg. 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 deliver 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.

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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.