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Uber, Postmates Agree on $2.65 Billion All-Stock Deal

Lyft Inc. and Uber Technologies Inc. signage are displayed on the windshield of a vehicle at Los Angeles International Airport (LAX) in Los Angeles, California, U.S., on Wednesday, Sept. 11, 2019. Uber Technologies Inc. drivers in California sued the company for violating a new state law they say is specifically designed to end Uber's practice of classifying the drivers as independent contractors, rather than employees. Photographer: Allison Zaucha/Bloomberg

Uber Technologies Inc.’s board of directors has approved a $2.65 billion acquisition of food delivery rival Postmates Inc. in an all-stock deal, expected to be announced as soon as Monday morning in the U.S.

Uber’s head of food delivery, Pierre-Dimitri Gore-Coty, is expected to continue to run Uber’s combined delivery business, according to a person who asked not to be identified discussing a private deal. The acquisition comes on the heels of Uber’s failed bid to acquire publicly traded GrubHub Inc., which was scooped up by Europe’s Just Eat Takeaway for $7.3 billion.Representatives for Uber and Postmates declined to comment.

The deal would help Uber gain ground against privately-held DoorDash, which is the market leader in U.S. food delivery. While Postmates hasn’t kept apace with DoorDash, it established a strong position in Los Angeles and the American Southwest, both of which could be valuable to Uber Eats.

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