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Food drink Postmates restores IPO strategies amidst food shipment offer boom – Reuters UK


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Food drink Postmates restores IPO strategies amidst food shipment offer boom – Reuters UK

(Reuters) – Postmates Inc has revived plans for an initial public offering following dealmaking in the U.S. online food delivery service sector that sparked acquisition interest in the company, according to people familiar with the matter. Postmates had struggled to generate the revenue growth required to excite IPO investors. But the COVID-19 pandemic buoyed its…

Food  drink Postmates restores IPO strategies amidst food shipment offer boom – Reuters UK

Food drink

( Reuters) – Postmates Inc has revived strategies for an initial public offering following dealmaking in the U.S. online food delivery service sector that sparked acquisition interest in the business, according to people acquainted with the matter.

Postmates had struggled to generate the earnings growth needed to excite IPO financiers. But the COVID-19 pandemic buoyed its fortunes, as customers who are remaining at house order meals from dining establishments or have their groceries provided.

Postmates has actually received acquisition offers from other business, consisting of ride-sharing huge Uber Technologies Inc and a so-called blank-check acquisition vehicle led by financial investment banker Michael Klein, according to the sources.

Postmates registered its IPO confidentially with the U.S. Securities and Exchange Commission in February 2019 however did not proceed with a stock exchange debut.

Just Eat Takeaway.com NV’s $7.3 billion deal to get GrubHub Inc previously this month, in addition to current fundraisings by peers, convinced it that the time had actually pertained to push ahead, the sources said.

Postmates might make its IPO registration public as early as July, kicking off what is usually a procedure lasting only couple of weeks till it goes public, the sources stated. The business will decide in the coming days whether it wishes to pursue the IPO or sell itself, among the sources included.

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The sources requested anonymity since the matter is private. Postmates and Uber decreased to comment. The New York Times first reported on Uber’s offer for Postmates.

Postmates was last valued at $2.4 billion, when it raised $225 million in a personal fundraising round last September.

Founded in 2011, San Francisco-based Postmates represented 8%of the U.S. meal delivery market in May, with DoorDash leading with a 44%market share, according to analytics firm Second Step.

In early June, DoorDash raised $400 million from private investors at a valuation of $16 billion. Also this month, grocery shipment start-up Instacart nearly doubled its evaluation to $137 billion with a personal fundraising round.

Reporting by Joshua Franklin in New York City and Anirban Sen in Bangalore; Extra reporting by Greg Roumeliotis and Krystal Hu in New York City; Editing by Himani Sarkar, Steve Orlofsky and Jonathan Oatis

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