DOJ Clears Uber-Postmates $2.65B Deal

The US Justice Department has cleared Uber Technologies Inc’s acquisition of food delivery company Postmates, news website Axios reported.

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

The ride-hailing company disclosed in a regulatory filing in September that the Justice Department 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 receive an approval.

The deal would aid Uber in expanding 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.

Uber on Tuesday, November 10, filed a letter to the antitrust division outlining commitments made in connection with the acquisition, including:

• Removing exclusivity provisions — which require restaurants to use only Postmates as their third-party food delivery service — in several markets, including Los Angeles, Miami, and El Paso.
• Not entering into any agreement with those restaurants that contains an exclusivity provision for six months following closing.