Back to top

Image: Bigstock

Uber (UBER) Closes Postmates Acquisition, Expands Delivery Unit

Read MoreHide Full Article

Uber Technologies, Inc. (UBER - Free Report) has completed its previously announced acquisition of Postmates Inc. The two companies are now in the process of integrating their U.S. operations.

The acquisition strengthens Uber’s delivery business, helping it widen its base in Los Angeles and the American Southwest, where Postmates had a strong base. At a time when Uber’s delivery business is already witnessing a boom, the buyout provides further boost.

While the coronavirus pandemic has caused a slowdown in Uber’s mobility business with people confining themselves to their homes, the same has boosted its delivery operations. The company has been seeing a significant rise in online order volumes from homebound customers. Notably, revenues and gross bookings from the Delivery segment surged more than 100% year over year in the third quarter of 2020.

Coming back to the transaction, while Postmates and Uber Eats apps will remain separate, it will be supported by a combined merchant and delivery network.

With regard to the closing of the transaction, Uber aims to cater to the needs of merchants by beginning a regional listening exercise across North America, next year. The initiative will provide merchants with the ability to provide feedback on products in development, policy decisions, etc.

Zacks Rank & Key Picks

Uber carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Internet - Services industry are Baidu, Inc. (BIDU - Free Report) , The Trade Desk Inc. (TTD - Free Report) and Marchex, Inc. (MCHX - Free Report) . While Baidu and The Trade Desk sport a Zacks Rank #1 (Strong Buy), Marchex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Baidu, The Trade Desk and Marchex have rallied more than 30%, 100% and 38% in the last six months, respectively.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Baidu, Inc. (BIDU) - free report >>

Marchex, Inc. (MCHX) - free report >>

The Trade Desk Inc. (TTD) - free report >>

Uber Technologies, Inc. (UBER) - free report >>