![]() ![]() The skirmish intensified in recent weeks when California’s Attorney General Xavier Becerra asked a state judge to force the companies into compliance. In California, where the government passed legislation to reclassify gig workers last fall, the platforms have staged an open revolt, refusing to comply and pledging $110 million to overturn the law. Such a shift would require the platforms to guarantee minimum wages, contribute to Medicare and Social Security, and fund drivers’ health insurance. The acquisition comes as Uber, Lyft, Postmates, and DoorDash continue to fight state-level efforts to recognize their workforces as employees rather than independent contractors. According to The Washington Post, rides for humans have tumbled 60 percent since last year, while food deliveries have surged by 100 percent. Grubhub’s parent company, itself the product of a merger between European firms Just Eat and Takeaway, will be the world’s largest food delivery company outside of China, according to Reuters.Ī bump in food delivery transactions has buffered some of Uber’s revenue losses as ridership plummets due to ongoing outbreaks of Covid-19. Now, the New York Times reports, just three companies will control the lion’s share of food deliveries in the United States: DoorDash leads the pack with 45 percent, Postmates and Uber Eats handle a combined 37 percent, and Grubhub, which already owns Seamless, will handle 17 percent. ![]() Then, in June, as Uber was reportedly eyeing Grubhub, Dutch company Just Eat acquired it for $7.3 billion. In August 2019, DoorDash acquired competitor Caviar for $410 million. The announcement marks the latest in a series of acquisitions that have heralded dramatic consolidation in the food delivery business over a relatively short period of time. Postmates will continue to operate under its own name. The acquisition represents a major course reversal for Postmates, which confidentially filed for an Initial Public Offering last February, though it never followed through. Ride-hailing giant Uber announced on Monday that it would purchase food delivery platform Postmates for $2.65 billion.
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