After dropping its bid for Grubhub, Uber is now reportedly seeking to acquire food delivery company Postmates.
But Postmates is not making the process straightforward. A blank check company led by investment banker Michael Klein has reportedly made an acquisition offer to the company — and Postmates has very much sought to take matters into its own hands: Though interest in the company had waned pre-pandemic, it is now reportedly reviving plans for an initial public offering in a move that could give Postmates a different benchmark on pricing and put pressure on buyers… if public market investors land on its side.
Postmates was last valued at $2.4 billion in September.
At any rate, consolidation in the food delivery market has been a long time coming, even pre-pandemic. The trend will continue, whether or not Postmates decides to sell.
What now, stimulus? There was a mad dash for the first round of the Paycheck Protection Program aimed at keeping the lights on at small businesses. So who would have expected cash would be left on the table?
Except that’s what happened: Some $130 billion of the program was still waiting for applicants even while it expired yesterday, on June 30. In a surprise move, the U.S. Senate passed on Tuesday an extension to the program, which some small businesses had avoided over the unclear guidance, pushing the expiration to August 8. The House and President Donald Trump will still need to sign off on the law.
That comes as hopes of a V-shaped recovery fade as reopenings are correlating with a surge in Covid-19 cases. For a good read about the economic recovery (that puts it in the alphabetical terms that we’ve used to define the charts), here’s a piece on a K-shaped recovery—which brings to light the socioeconomic and racial divides that are being magnified as a result of a pandemic that has razed storefront businesses but boosted many tech companies.