Popular food delivery service Postmates is in the process of partnering with Uber on a $ 2.65 billion blockbuster deal that will see the company team up with competitor Uber for the delivery of groceries Eats. The deal remains under antitrust control and has not yet been approved for completion. The deal is expected to close in the first half of 2021.
However, a new SEC filing released after close of business this Friday gives us some insight into how postmates are evolving in the new world of global pandemics and U.S. seating closings.
Postmates posted a loss of just $ 32.2 million in the second quarter, compared to a loss of $ 73 million in the first quarter, cutting cash use nearly in half. This compares to Uber Eats' results, which posted a loss of $ 286 million in the first quarter of 2020 and a loss of $ 232 million in the second quarter – an improvement of around 20%, according to Uber's latest financial reports .
In total, Postmates lost $ 105.2 million in the first half of 2020, compared to a loss of $ 239 million in the same period in 2019.
Uber also detailed the postmates cap table for the first time with its filing today. Fully diluted, Tiger Global, which owns 27.2% of the company, is Postmates' largest shareholder. The start-up fund follows with 11.4%, Spark Capital with 6.9% and GPI Capital with 5.3%. In Uber's $ 2.65 billion all-stock deal, Tiger Global brings in around $ 720 million and Founders Fund around $ 302 million, excluding some of the stock preferences and dividends that certain owners of the company hold.
While Postmates and Uber continue to go through the federal antitrust review process, the companies are also under legal pressure in their own backyards. Uber noted in its filing today that it and Postmates are facing headwinds due to California's AB 5 bill, which aims to provide additional employment protection to freelance workers. However, the Company notes that such litigation “may not in and of itself create a party's right to terminate the transaction”.