Uber, which started as a ride-hailing service, has long dabbled in other categories, including meal deliveries with its Uber Eats service. Uber's delivery service took on new importance and became Uber's biggest source of revenue. The company reported that revenue from Eats reached $1.2 billion in the second quarter, double a year earlier. However, Uber's Rides business revenue plummeted 67%, to $790 million. Overall, Uber lost $1.8 billion during the second quarter. Contributing to the loss was nearly $400 million in restructuring costs as the company cut roughly 25% of its workforce. In July, Uber announced a deal to buy the on-demand delivery startup, and former Eats competitor, Postmates for $2.65 billion.
Brainstorm potential reasons why Uber would like to acquire Postmates.
Uber has hired your team to help it reverse the trends of declined revenue. What factors you would like your team to look at when approaching this problem?
Uber's delivery service is now bigger than its rides business (CNN)