July 6, 2020: Failing to merge with the rival Uber, is all set to buy food delivery service Postmates at $2.65billion. All the stock details will be announced today.

The company will be running by the CEO, Bastian Lehmann, and his team as a separate entity. The deal would help Uber to have a better position in the Food delivery market in the United States. Currently, DoorDash holds more than 45% of the market.

The decision was taken after Uber backed out from bidding its rival GrubHub last month following security concern. GrubHub finally merged with the European giant Just Eat Takeaway in later June.

The discussion of taking Postmates was in papers from last one year and picked up its phase when Uber dropped the idea of acquiring the Rival. The Board of Directors of Uber has approved the deal and is all set to take over in the next few days.

After combining with Postamates, it would be a total share of 37% is what the company would control in the food delivery market. Experts say this will boost Uber as it has seen a substantial loss in the share and drive business in this pandemic. However, Uber eats increase its revenue by 53% in the last quarter. Even though many startups have tried to make their mark in the market but has hampered the giants in the market with profits.

The acquisition is an important step in the Uber business as the pandemic continues and, 37% of the market is in their hands and, they look for a better quarter in the coming days.