Ride service company Uber Technologies announced on July 6 that it will acquire Postmates for about $2.65 billion in an all-stock transaction. Founded eight years ago, the on-demand food delivery platform Postmates is a complementary offering to Uber Eats.

Uber says it will keep the consumer-facing Postmates app running separately, supported by a combined merchant and delivery network. The transaction, subject to the approval of Postmates stockholders, regulatory approval and other customary closing conditions,is expected to close in the first quarter of 2021.

Interest has surged in food delivery during the coronavirus, and competition has intensified among the service providers. Uber had been in discussions recently to acquire another competitor, Grubhub. But European takeout company Just Eat Takeaway ended up buying Grubhub in June for $7.3 billion.