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Here’s What Uber Acquisition Over Postmates Means to Entrepreneurs

  • Uber acquires delivery service Postmates in a $2.65 billion all-stock deal. Aims to create the country’s second-largest delivery goliath.
  • Ride-hailing giant prep to expand in the delivery space for groceries, essentials, and other goods.
  • Sets a challenge for the business owners eyeing the on-demand delivery market, to keep their businesses running midst Covid-19.

Recently, the ridesharing giant- Uber, acquired its delivery competitor Postmates. While the latter continues to operate under its own name, this deal which was worth $2.65 billion will help UberEats become the country’s second-largest delivery goliath.

As per the reports, Postmates wasn’t the first choice. Just a few weeks back, Uber was rumoured to be courting competitor Grubhub for a merger. If that would be the case, the former would have made it possible to create the largest delivery platform. However, due to antitrust concerns, the plan fell apart. And it was European company Just Eats Takeaway that acquired Grubhub for a $7.3 billion deal.

The below stated infographic describes the journey of the two major delivery players in United States, i.e. Uber and Postmates. Have a look:

Certainly, this will be a game-changing deal for the on-demand food industry in the United States. While it brings a tough face-off for the other big players like Doordash and Grubhub, this appears to be an eye-opening moment for the budding entrepreneurs. Wondering – How?

What Does This Collaboration Mean To Entrepreneurs?

To put it simply, this deal leads business owners and budding entrepreneurs on the path to the transaction toward the ‘Next Normal’. The year 2020 took an unexpected turn with COVID-19 hitting hard. There is no single life that remains unaffected from the pandemic-effect. In one or the other way, it has impacted every business and industry. And Uber is no exception.

As stated in the infographic earlier, it is due to Coronavirus that lead to a drop of 80% in ride-sharing business. But the adverse conditions also brought a surge increase to food delivery section. Acquiring Postmates, Uber wants to expand its food delivery business and consolidate its market position.

For the entrepreneurs who are yearning for ways to keep their businesses running midst this chaos, you need to understand – ‘Delivery’ is the next normal. That said, have you deliberately purchased any products or services online instead of offline due to coronavirus pandemic? Well, the answer to this would be YES. And it is not just you; there has been a severe shift to online purchases. The chart here represents the increase in online purchase of some product categories by May 2020.

 

Restaurant delivery/takeaway 31%
Hygiene products (e.g. hand sanitizer, toilet paper) 27%
Clothing 26%
Household cleaning products 26%
Food and drink delivery 24%
Health products (e.g. medicine) 21%
Books 15%
Hobby supplies 15%
Games 13%
Consumer electronics, household appliances, furniture 11%

 

Moving further, let’s have a sneak peek into how delivery services have added to various industry verticals after the virus outbreak.

 

Food Delivery: As more people prefer to stay at home nowadays, there has been a massive increase in the demand for food delivery services. Dine-in is no longer a great option during these times of social-distancing. Hence, customers are turning to delivery to treat themselves. Moreover, delivery services including JustEat, Postmates and UberEats have turned highly responsible and alert. Offering contactless delivery options, they tend to eliminate the risk of spreading the virus. For the food business owners who have been dealing with sales drop-down due to virus spread, it is the right time to take a plunge. Launch your online food delivery business in just less than a week.

 

Grocery Delivery: Do you know the number of customers for grocery delivery has surged by 146%? Being categorized as essential business, it remained open during the pandemic lockdown too. Shopping at the offline grocery stores isn’t considered to be a safe option. In such circumstances, online ordering and delivery solutions have helped grocery businesses to keep running. Many grocery stores are making long-term efforts to get support their community in these tough times. And even their sales have been increased by 233%.

Planning to take your grocery business online? Empower it with the most advanced technology solution.

 

Pharmacy Delivery: Another business that experienced an increase in sales despite COVID-19 is medicine delivery. The drug stores and pharmacies revealed that the number of home deliveries has increased manifolds, with some reporting a rise up to 300%. If you want to start with the pharmacy delivery business, make sure it is back by a robust tech suite.

 


Besides, there is a noteworthy boom in e-commerce deliveries, alcohol deliveries, and many more. These businesses (and similar ones) are now finding ways to reach their customer’s doorstep. It is here when the need for a robust delivery system arrives. Do you need the same for your business? This pickup & delivery solution is definitely for you.

Act Today, For Tomorrow!

Announcing the all-stock acquisition Uber has signalled its interest in a different type of delivery services. It is an alarming opportunity for business owners to take a step forward. For those entrepreneurs who have been a part of the on-demand industry or planning to enter the same, it is a perfect time. The current situations have drastically changed how people shop, eat, travel, and work. To make a big hit in the industry, you will need the right technology partner.

Remember, there is no space for the delay. Get in touch with our expert business consultants today to start your journey to success with us.

July 23, 2020
Author

Neha Sharma

Being a Senior Content Writer at Code Brew, Neha is intrigued by new trends and technologies in the digital world. She is fond of curating, developing, and designing different types of content to help businesses grow in this competitive era.

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