As Uber hunts for a deal, can Postmates leverage an IPO? – ProWellTech
It was an intense job last 24 hours for Postmates on-demand delivery companies. The company is reportedly re-launching its IPO plans, possibly selling to Uber, or perhaps trying to go public with the help of a special-purpose acquisition vehicle, also known as SPAC.
For mail companions, a company caught between the cash-boosted increase and Uber’s ability to lose hundreds of millions in its Uber Eats delivery service every quarter, multiple options are likely to be welcome.
The postmates were first presented in public in early 2019, but his IPO did not materialize. It was also reported that the company would pursue a sale in 2019 after being declared public. Also, an M&A exit was not displayed.
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But 2020 is very different from 2019. With the GrubHub bidding war behind us, Uber looks hungry for more volume and the IPO market is surprisingly hot due to the global pandemic. Mailmates may have a number of viable options in front of them, instead of continuing to work as a private company.
The IPO market
So what do we do?
Despite some beeps, if Postmates managed something similar to revenue growth acceleration as people stayed home and ordered more food and other goods, the company’s IPO story could prove interesting. And in that case, the company could perhaps better what a money-burning company can afford to take part in an M&A transaction by becoming public.
Let’s check the tape. It is a commonly known fact that public markets have favored technology companies this year, particularly software companies. For many venture capital backed companies, this is great news. For Postmates, it’s a slightly different equation, as its margins won’t match those of the software companies, nor will its revenues come back in a similar way.
But there are IPOs from this year we can indicate the presence of companies that do not have high margins or recurring revenue that made it big. So, there is an IPO path for startups and unicorns supported by venture capital that become public even if they are not software entities.