Briefing

Seeking respite from cratering core business, Uber in talks to acquire Postmates

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The ride-hailing company is looking to plunk down US$2.6 billion for Postmates, one of the earliest smartphone-centric gig-economy startups. Uber Eats had US$1.4 billion in revenue last year. (The New York Times)

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Talking point: The acquisition of Postmates would grow Uber’s footprint in the food-delivery industry and shore up some of the revenue lost as the bulk of Uber’s ride-hailing customers continue to self-quarantine. Still, the money-losing company faces hurdles in both sectors. A planned injunction by a coalition led by California Attorney General Xavier Becerra would force the company and its competitors to reclassify its drivers as employees—an expensive blow to its business model.