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Postmates Acquisition to Increase Uber’s Loss From Deliveries $7-$12 Million in Next Thirty Days
Deal signals support for local restaurants but not profitability.
December 1, 2020
Though the company's loss will widen due to the acquisition, UBER’s (UBER) CEO praised the all-stock acquisition in press release:
“Uber and Postmates have long been committed to powering delivery services that support local commerce and communities, all the more important during crises like the one we face today. We’re thrilled to bring these two teams together to continue to innovate, bringing ever-better products and services for merchants, delivery people, and consumers across the country,” said Uber CEO Dara Khosrowshahi.
Missing from the news release — but disclosed in the 8-K — is the impact the acquisition will have on Uber’s adjusted EBITDA in the next 30-days:
“For the quarter ending December 31, 2020, the Company estimates that Postmates would contribute approximately $350 million to $400 million to Delivery Gross Bookings(1) and increase Delivery Adjusted EBITDA(2) loss by approximately $7 million to $12 million.”
Uber shares jumped approximately 3.5% before ending flat on the day.
Related: LYFT, GRUB, DASH
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