Uber on Monday finally found a deal it can sink its teeth into.
The tech company will pay $2.65 billion to combine its Uber Eats food delivery service with rival Postmates.
Uber has been looking for a way to diversify revenues. It first tried to buy GrubHub a few weeks ago, but that deal ultimately fell apart on antitrust concerns and GrubHub immediately got hitched to a European delivery company for more than $7 billion.
With this deal, Uber is getting a much smaller player among the food delivery companies. Postmates had only 8 percent of the delivery market in May, according to analytics firms Second Measure. Its biggest rival DoorDash had 44 percent of the market.
But Uber CEO Dara Khosrowshahi still sees potential to grow the combined unit and use that to boost his chances of turning Uber from a money-losing company into a money-making one.
With demand for food-delivery soaring through the roof with many customers reluctant to dine out, Uber Eats saw orders last quarter surge more than 100 percent compared to a year ago.
In a sign of optimism, shares of Uber rallied on word of the deal, a rare feat for a company shelling out billions to buy a competitor.