Uber completes $2.65 billion Postmates acquisition

Uber completed its $2.65 billion acquisition of delivery platform Postmates, the companies announced Tuesday.

The announcement came about five months after Uber said it reached an agreement to acquire Postmates in an all-stock deal. 

Uber said on Tuesday the consumer-facing apps of Postmates and Uber’s food delivery platform Uber Eats will continue to run separately but will be supported by a combined network of merchants and delivery drivers.

“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,” Uber CEO Dara Khosrowshahi said in the announcement. 

Postmates CEO and co-founder Bastian Lehmann said that working alongside Uber Easts will help the company “create even more opportunities for our customers, continue to drive growth for our merchants, and deliver unique earning opportunities for our Postmates.”

Postmates is one of the smaller food delivery companies in the U.S. Its market share trails Grubhub and fellow competitor DoorDash. But together, Uber and Postmates will reportedly create the second-largest delivery platform in the U.S., behind DoorDash.

Uber reportedly failed in an attempt to acquire Grubhub earlier this year.