Israel-based OurCrowd, the world’s largest investment crowdfunding platform, recently announced the launch of a $ 100 million Pandemic Innovation Fund. The Fund will invest in both new startups and certain companies already included in OurCrowd’s existing portfolio.
Read more here.
The post [OurCrowd in Crowdfund Insider] Israel Is Reportedly Preparing to Finally Roll Out its Fintech Regulatory Sandbox Program, which is Part of Proposals in New Arrangements Law appeared first on OurCrowd.
Like other travel- and transportation-related businesses, Uber’s ride-hailing segment has been negatively impacted by the COVID-19 pandemic, due to shelter-in-place orders throughout the United States. On-demand delivery, however, has grown, with people relying on services like Uber Eats to get food without leaving their homes. According to its last earnings report, Uber’s ride-hailing gross bookings dropped, but its food delivery service saw gross sales growth of 54% during its first fiscal quarter.
According to previous reports, Uber made an offer to buy Grubhub, another on-demand delivery service, earlier this year, but after that deal fell through, it approached Postmates. Bloomberg reports that Uber and Postmates have actually talked on and off for about four years, but negotiations became more intense about a week ago.
Grubhub ended up being acquired by Just Eat Takeway in a deal worth $ 7.3 billion after its negotiations with Uber stalled.
If the deal goes through, the main competitors in the American food delivery market would be Uber Eats/Postmates versus Grubhub/Takeaway versus DoorDash.
In other countries, companies like Grab have also begun building out their on-demand delivery services to make up for losses from fewer ride-hailing bookings. For example, Grab responded to stay-at-home orders in Indonesia (its main market) and other Southeast Asian countries by re-deploying ride-hailing drivers to on-demand deliveries for food and essential items.
According to the Times, the talks are still ongoing and the deal could fall through.
For those that have been paying attention to Uber, this appetite is not new, albeit consistent. A little over a month ago, the ride-hailing company was reportedly pursuing an acquisition of Grubhub, another food delivery company. Grubhub was ultimately acquired by Just Eat Takeaway in a $ 7.3 billion deal, but only after the deal with Uber fell through over a variety of concerns.
Food delivery market has set to benefit largely from the COVID-19 pandemic, as stores remain shuttered or switch operations to takeout only. Latest earnings from the public ride-hailing company show that its ride-hailing business is slowing while its food delivery service is growing like hell. Gross bookings for Uber Eats last quarter were $ 4.68 billion.
So even though Uber still loses a ton of money ($ 2.94 billion including all costs), its Uber Eats growth is staggering. And the green shoots might be fueling some of this interest in other competitors.
If regulatory concerns were an issue, Postmates may make a better fit.
With a valuation of $ 2.4 billion, Postmates is significantly smaller than Grubhub. And while the company filed to go public nearly 16 months ago, it held off eventually citing “choppy market” conditions.
So if Uber Eats and Postmates combined, the result would still be smaller than Doordash’s market hold, but would be competitive nonetheless. DoorDash, last valued at $ 13 billion, confidentially filed for an IPO nearly four months ago.
Also, Postmates delivers more than just food.
Postmates declined to comment on rumors or speculation. Uber did not immediately respond to a request for comment.