DOJ Approves Uber’s Acquisition of Postmates, Axios Reports

DOJ Approves Uber’s Acquisition of Postmates, Axios Reports
The Uber logo is displayed on a mobile phone in this picture illustration taken on Nov. 25, 2019. (Hannah McKay/Reuters)
The U.S. Justice Department has cleared Uber Technologies Inc.’s acquisition of food delivery company Postmates, news website Axios reported on Nov. 9, citing a source familiar with the matter.

Uber announced in July that it would buy Postmates for $2.65 billion in an all-stock deal, after its bid to acquire rival Grubhub Inc. fell apart because of regulatory and other concerns.

The ride-hailing company disclosed in a regulatory filing in September that the Justice Department (DOJ) was also scrutinizing its plan to buy Postmates over antitrust worries.

The agency’s move put the deal on hold until both companies complied with the government’s request for more details to win approval.

The deal would help Uber expand its food delivery market share and significantly increase the business of supplying everyday goods at a time when the COVID-19 pandemic has pummeled its core ride-hailing service.

The DOJ, Uber, and Postmates didn’t immediately respond to Reuters’ requests for comment.

By Bhargav Acharya and Kanishka Singh