Uber Technologies Inc. changed the car industry forever by making ride-hailing services extremely popular and even changed how we think of car ownership. But just like large auto manufacturers, Uber has been forced to adapt as the coronavirus pandemic persists. In order to find more success during these times, Uber has made a deal to acquire food-delivery company Postmates Inc.

This big takeout deal could help Uber’s image

Uber has taken huge hits over the last few years mostly because of its inability to avoid insane controversies. The company has been involved in numerous horrific scandals, from underpaying its workers, rape accusations, and even stalking customers﹣just to name a few. It’s hard to deny that Uber has earned a horrible reputation. Plus, the negative #DeleteUber campaign has persisted for years. However, before coronavirus outbreaks intensified in the U.S, Uber for the most part managed to stay out of the headlines for negativity in early 2020.

Uber inked a $2.65 billion deal to purchase Postmates which might also have the ability to positively impact its image. The Postmates deal is especially good news for the company since their recent attempt to buy Grubhub didn’t work out. Uber’s desire to amplify its presence in the food-delivery realm only makes sense because it already has its own Uber Eats service.

“This transaction brings together Uber’s global Rides and Eats platform with Postmates’ distinctive delivery business in the U.S. Postmates is highly complementary to Uber Eats, with differentiated geographic focus areas and customer demographics, and Postmates’ strong relationships with small- and medium-sized restaurants, particularly local favorites that draw customers to the Postmates brand”

Uber Technologies

Uber is expanding in the grocery delivery space too

Naturally, Uber Eats vice president Pierre-Dimitri Gore-Coty will likely manage the logistics of the Postmates deal. Uber expects to finalize the deal in early 2021 based on regulatory approval. In addition to the big Postmates news, Uber also recently announced that it’s expanding its grocery delivery service offerings with its partner Cornershop. 

Uber’s new grocery service is being introduced in cities in Canada and Latin America first. The company plans to expand it to Miami and Dallas sometime later this month. And given the ongoing pandemic, Uber expects grocery delivery to become more popular and necessary. The company says it’s excited to offer customers additional ways to save their time and remain safe. 

Uber’s main business is still struggling though 

While Uber’s latest ventures are intriguing, the company is still in a tough spot. More people ordering meals and groceries at home means that the foundation of its business is by no means returning to normal. COVID-19 has caused many of us to leave our cars idle and to avoid going to social events altogether. Because of the lack of demand as a result of the virus, Uber laid off over a quarter of its employees. The company’s CEO Dara Khosrowshahi also stated that rides worldwide have declined by 70 percent.