The ride-hailing firm described the all-stock transaction as “highly complementary” to Uber Eats, citing the two companies’ different geographic focuses and demographics. Uber CEO Dara Khosrowshahi said the two would “innovate together.” The deal is expected to close in the first quarter of 2021. (The Logic)

Talking point: The deal is the latest in a flurry of activity in the food-delivery space, with the big players seeking to position themselves for success amid coronavirus-fueled demand and increased costs for protective gear. It comes a month after Uber failed to acquire online food-ordering platform Grubhub to form the biggest food-delivery service in the U.S.; Just Eat Takeaway bought it instead, for US$7.3 billion. Postmates had filed for an IPO in February 2019, but delayed it that October, after WeWork’s failed IPO bid. DoorDash just raised US$400 million in a funding round that valued it around US$16 billion, and comes as the privately held company lays the groundwork for its own IPO. Uber Eats and Postmates together would have a 37 per cent share of food-delivery sales in the U.S., according to Edison Trends, which tracks credit-card spending. Despite this, investors say the partnership “doesn’t significantly move the needle” towards profitability for Uber, with DoorDash still bigger than the two combined.