Postmates CEO Bastian Lehmann. Photo credit: Fortune Magazine, under Creative Commons license

A few days ago, we reported on Uber working towards a deal to acquire Postmates for about $2.6 billion. That deal has apparently been finalized, with a formal announcement from both companies. Postmates is getting acquired by Uber in an all-stock deal worth $2.65 billion. Postmates is particularly complimentary to Uber Eats, Uber’s food delivery arm. In the company lies some key markets such as the Los Angeles area and the American Southwest in general. Although Postmates was an early mover into the food delivery market, it didn’t expand as rapidly as its competitors like DoorDash. The San Francisco-based company seems to have placed its focus on some key cities and, in turn, dominated in those cities. In general, Postmates lags behind Uber Eats, DoorDash, and Grubhub in the U.S., according to data from Sensor Tower.

Postmates as a private company has raised about $900 million in funding. Last valued at $2.4 billion by investors, a $2.65 billion acquisition seems like an adequate deal for Postmates’ investors and other shareholders.