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Uber, hungry for a deal, now reportedly in talks to acquire Postmates

June 30, 2020. Summarized by summa-bot.

A Postmates Inc. delivery person stands outside a Shake Shack restaurant in Washington, D.C., U.S., on Monday, April 20, 2020. Shake Shack Inc. will return a $10 million loan from the U.S. government amid criticism that the publicly traded burger chain and other larger companies gobbled up the emergency funding while smaller businesses were frozen out. Photographer: Andrew Harrer/Bloomberg via Getty Images

Just a few weeks after it lost out on a high-profile deal to acquire food delivery company Grubhub, Uber hasn't given up on bolstering its own meal delivery service with an acquisition.

(CNN Business)Just a few weeks after it lost out on a high-profile deal to acquire food delivery company Grubhub, Uber hasn't given up on bolstering its own meal delivery service with an acquisition.

Uber (UBER) is now reportedly in talks to buy Postmates, a nine-year-old delivery startup, for about $2. 6 billion, according to the The New York Times and the Wall Street Journal, citing sources familiar with the matter.

Uber's attempts to pursue big, pricey acquisitions in the food delivery market highlight a fundamental shift for the company.

Uber, which started as a ride-hailing service, has long dabbled in other categories, including meal deliveries with its Uber Eats service.

There's just one problem for Uber as it looks to bet more on food delivery: the market is incredibly crowded.

This month, Uber lost in its bid to buy Grubhub to a Netherlands-based company, Just Eat Takeaway. com, whose offer valued Grubhub at $7. 3 billion.

DoorDash announced it raised $400 million in new financing, valuing the company at nearly $16 billion.

Meanwhile, grocery delivery startup Instacart raised $225 million, bringing its valuation to nearly $14 billion.

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