Postmates appears to be in play.
The food delivery service that operates in nearly 3,000 cities in the United States, is either on the verge of going public or being acquired. Early Monday evening Reuters reported that the nine-year-old company had "revived plans for an initial public offering."
Postmates had registered with the Securities and Exchange Commission last year for an IPO but opted not to move forward with the plan.
However, shortly after the Reuters report was published, The New York Times, reported that "Uber has made a takeover offer to buy Postmates," citing "three people familiar with the matter."
|UBER||UBER TECHNOLOGIES, INC.||46.40||+0.93||+2.05%|
|GRUB||JUST EAT TAKEAWAY.COM NV||15.42||-0.82||-5.05%|
Representatives of Uber and Postmates declined to comment on any potential deal talks.
The coronavirus pandemic has proven to be a boon to several of the food delivery services. From Uber Eats to DoorDash to GrubHub, all have seen an uptick in business since tens of thousands of restaurants have been shut down for dine-in services. However, the third-party delivery apps have faced backlash for charging high commission fees -- as much as 30 percent -- which has hurt mom-and-pop restaurants already feeling the long-lasting pain from the pandemic shutdown.
There has been a flurry of activity in the executive suites of these companies. In February, DoorDash filed for an initial public offering and was valued at the time at more than $12 billion. Then as recently as last month, reports surfaced of a deal for Uber and its Uber Eats service to merge with GrubHub. But those talks collapsed and GrubHub wound up merging with Europe’s Just Eat Takeaway.com to create one of the world’s largest online food delivery marketplaces.
Postmates has received investments over the years from some of the investment world's biggest names including BlackRock, Spark Capital and Tiger Global Management.