Spurned by Grubhub after negotiating a deal with Just Eat Takeaway of the Netherlands, Uber has agreed to buy Postmates for $2.7 billion in an all-stock transaction. Postmates holds a 10 percent share of the home delivery segment, ranked 4th after DoorDash (44 percent); Uber Eats and GrubHub.

It is questionable whether any delivery service is currently profitable and with competition in the segment and complaints from restaurants that commissions are too high, there does not appear to be much benefit from consolidation.  In contrast to Uber and Postmates that are essentially delivery services, the Just Eat Takeaway combination concentrates on ordering using apps and unique software integrated with restaurant kitchens, leaving the decidedly non-profitable delivery function to individual collaborating QSRs and take-out stores.

Financial analysts are divided on the justification for the transaction and whether the combination of Uber and Postmates will engender synergy. UBER closed at $30.68 on Monday 6th July but rose 7.0 percent post-announcement to close on Tuesday in a down market at $32.82.