Consider the impact to both companies and to the market as a whole.
Write your opinions below and engage with other members.
IMPORTANT
To write an answer to this question and to make posts yourself you need to Sign Up and become a Member using the Log In button.
Make sure your account is Public - this just means others can see your comments and posts.
You should be prompted to become Public when you go to submit your first comment.
Any issues - feel free to contact us at info@legaljargon.net
Postmates has a strong position in the US which would be valuable to Uber Eats, especially given that Uber's ride-hailing business suffered due to the pandemic. The merger also allows an improved delivery service and greater selection of foods which will attract people and form a good customer base.
I agree, it would put Uber Eats in a strong position in the US. It can be argued that food delivery service would be greatly improved with this move. However, would it be healthy for the market in regards to competition? Healthy competition usually allows for competitve pricing and makes companies want to improve and do better in order to trump the others. Hopefully Uber would not get complacent with their place in the market.
I think it will be interesting to see the effect of this deal on employees, particularly from Postmates. Will the things agreed in their contracts prior to the deal stay the same now they've been bought by Uber or will any changes be made that could affect them? Potential new jobs could be created as a result of the new expanded choice of restaurants this move will bring
Great point. From an employment law perspective, it will be so important to know whether the companies'/worker's contractual obligations will remain the same or whether they'll change after the merge.
Uber's decision to finalise the deal with Postmates was accelerated due to the decrease in the demand for their main income stream, rides, due to the pandemic.
This merger exposes Uber to the American market and allows it progress with its plan to expand into other areas such as grocery delivery and not depend solely on prepared meal delivery.
This merger placed Uber the second highest bidder in the American market with a 37% share in the market, staying just under the market leader DoorDash which has a 45% share in the market (arguable worrying as it makes them very dominant).
The merger will allow Uber to compete with the biggest market owner and hopefully decrease prices, create variety and open up the market for new players which is always good for consumers. However, it can be argued that due to Uber taking over Postmates, there may be an increase in the usual prices as Uber moves Postmates status from the 4th market holder to 2nd. How it plays out... we will have to wait and see.