Nov 9, 2020 - Technology

Scoop: Justice Department OKs Uber-Postmates deal

Margaret Harding McGill

Illustration of mini robots delivering food — Illustration: Sarah Grillo/Axios

The Justice Department has cleared Uber’s acquisition of food delivery company Postmates, a source familiar with the deal told Axios Monday.

Why it matters: The DOJ was scrutinizing the $2.65 billion all-stock deal over antitrust concerns as the food delivery sector undergoes consolidation.

The DOJ's antitrust division requested more information about the merger earlier this fall.

Details: Uber on Tuesday 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.

Flashback: Uber moved to acquire Postmates this summer after talks with GrubHub fell through.

Instead, European food delivery company Just Eat Takeaway agreed to buy GrubHub.

Editor's note: This story has been updated to include material from Uber's letter to the DOJ.

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Scoop: Justice Department OKs Uber-Postmates deal

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