The U.S. Justice Department has cleared rideshare king Uber‘s acquisition of food delivery company Postmates, online news outlet Axios reported, citing a source familiar with the matter. U.S. regulators were looking into antitrust implications of the deal.
The plan has Uber buying Postmates for $2.65 billion in stock. The deal demonstrates the ongoing consolidation in the industry as companies scramble to see who will become both the biggest and the fastest in the food delivery world.
Before striking the Postmates pact, Uber had failed in its attempt to acquire Grubhub, a delivery service company. The bid foundered amidst antitrust debates. Democratic lawmakers expressed concerns it would create a new market leader in the U.S. online delivery industry bigger even than rival DoorDash.
Nonetheless the Postmates deal will give Uber Eats an estimated 37 percent market share, up from a current 29 percent. That would put the combined giant within sight of DoorDash’s 44 percent U.S. market share.
For its part, Postmates has kept adding to its services since the Uber deal was first announced in July.
Last month, it added a service that enables local merchants to create a digital storefront on Postmates — with the goal of boosting online sales of products that would normally sell in brick-and-mortar stores.
Retailers can showcase their offerings and give shoppers a variety of options to get their orders, including on-demand delivery, in-store pickup or non-contact curbside pickup.
“This year, COVID really changed the landscape of how we purchase essentials, spend time recreationally and even how we treat ourselves,” said Heather DeLeon, director of sales for Anastasia Beverly Hills and part of the shop launch on Postmates.
She said the service will allow merchants to showcase their products to users “in a completely new and exciting way.”
Also last month, Postmates introduced a partnership that will deliver TikTok Treats inspired by the online platform’s users.
Nick Tran, head of global marketing at TikTok, said the video-sharing platform influences movements “from music to fashion to food.”