MGR eCommerce Edge Weekly | June 30, 2020

MGR eCommerce Edge Weekly | June 30, 2020
Top News This Week

Uber_Postmates

Uber Buying Postmates? Could They Form the Logistics Company to Rule Them All?

Uber is reportedly attempting to acquire Postmates for $2.8 Billion. This merger could be interesting for multiple reasons beyond just the implications on the food delivery market.

In food delivery space, the top four companies by market share are:

1. DoorDash
2. GrubHub
3. UberEats
4. Postmates

This would be a consolidation of the number 3 & 4 players in an attempt to unite and better compete with the top two. However, if you step back and look at the last-mile delivery industry as whole, where Uber leads all companies in the US overall, this would be an incredibly strategic acquisition that could possibly cement Uber’s position as leader for many years to come.

Uber has long said they want to be the winner of the last mile logistics space, whether they are transporting people or goods. What’s unique about Postmates is, as I discussed earlier this year, they are the only one of the food delivery companies who is already actively building out infrastructure and networks for delivering non-food items.

This is incredibly relevant to eComm and retail. Retailers need to find a way to compete with the convenience of at home ordering, and partnering with someone like Postmates and tapping into their delivery driver network makes a ton of sense. Whether or not this deal will go through is yet be seen, but if it does the implications will be far wider than just a shake in food delivery.

Other Notable Links:

1. India bans TikTok, WeChat, and many other Chinese apps, could the US do the same? – WSJ

2. FCC designates Chinese telecom companies Huawei & ZTE as national security threats, trying to block them from building infrastructure in the US – THE VERGE

3. Lululemon acquires DTC fitness company Mirror for $500 million – CNBC

4. Many top brands including Ford, Coca-Cola, Unilever, and Starbucks pull social media ads in protest of policies, but demands are unclear – NPR

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2020-07-04T10:13:28-07:00

About the Author:

Manuel Gil Del Real is the owner of MGR Consulting Group, an Interactive Marketing Agency providing marketing solutions to companies worldwide. He’s also an auto racing enthusiast and a blog author who enjoys sharing his thoughts and ideas on eCommerce, SEO, Social Media, Website Design, Video Marketing Internet Marketing, entrepreneurial advice, lifestyle and travel experiences among many others.