Uber is buying Postmates for $2.65 billion, reports say

Ride-hailing giant Uber is buying food delivery company Postmates in a $2.65 billion all-stock deal, reports Bloomberg. The publication says Uber and Postmates could announce the deal as soon as today.

Under the deal, Uber will scoop up Postmates, but the company will continue to be run as a separate entity. Uber’s existing food delivery service, Uber Eats, and the company’s new Postmates service will both be overseen by current Uber Eats head Pierre-Dimitri Gore-Coty. However, current Postmates CEO Bastian Lehmann will remain in his post to manage Postmates directly.

Postmates was founded in 2011, and though it lags behind its main U.S. rival, DoorDash, it has a strong user base in the American Southwest and Los Angeles. Bloomberg says Uber and Postmates have been in some form of on-and-off takeover discussions for “about four years,” but those discussions accelerated last month after Uber approached Postmates again. Last month is also when Just Eat acquired Grubhub for $7.3 billion—something Uber failed to do.