After submitting its IPO filing to regulators confidentially in February, Postmates has been talking to potential acquirers including Uber, Walmart and DoorDash, according to Vox.
There’s good reason for companies in the food delivery industry to attempt to consolidate. It’s an extremely competitive, fragmented market that well-funded companies are trying to win, city by city. Postmates is a much smaller business than Uber Eats, DoorDash or GrubHub. On top of that, Uber’s IPO disappointed—a potential warning for Postmates.
Postmates CFO Kristin Schaefer told us in an interview earlier this year that it’s likely some rivals will eventually merge. It’s not uncommon for companies to consider acquisition offers while planning for an IPO. Remember Qualtrics, which sold itself to SAP just ahead of its slated IPO last November?