Uber acquires Routematch, augments food delivery service

Uber acquires Routematch, augments food delivery service

In its newest attempt to expand its services, Uber Technologies Inc. purchases a transit software provider and, at the same time, plans to augment its food delivery service.

It appears that Uber is not yet satisfied after acquiring Postmates last week.

On Thursday, July 16, the ride-hailing service announced its recent acquisition: Routematch, a software development company that provides transit technologies for public transportation agencies.

Uber buys transit software Routematch

Uber’s acquisition marks its first move towards its collaboration with public transport agencies. As per Uber’s head of transit David Reich’s interview, purchasing Routematch will allow the ride-hailing business to combine both companies’ technologies, including matching and routing.

“This lets us go so much further so much faster in being able to power public transit agencies,” Reich explained.

Founded last 2000, Routematch is an Atlanta-based software transit developer. It has provided technologies to more than 500 transit agencies in Australia and North America, such as scheduling, tracking, fleet management, route planning, and payment processing.

The ride-hailing service has been reportedly looking to enter the industry of public transport. And it loos like teaming up with Routematch can give Uber a good position to realize its plan.

Transit officials, however, have long criticized the company for luring commuters off public transit.  That is why Reich also hopes that, by merging with Routematch, it will show agencies that the company is serious about its attempt for a collaboration.

“We are now much more credible now,” Reich said.

The software transit developer is expected to join Uber together with its 175 employees, as per Routematch chief executive Pepper Harward. However, it did not disclose any financial details surrounding the acquisition.

Uber acquires Routematch, augments food delivery service

Khosrowshahi: ride-hailing service will make up 50% of the business

CEO Dara Khosrowshahi also revealed its plans to augment the company’s food delivery service. In his interview with NDTV last week, he said that Uber is looking to “double-up” its delivery business.


“Our delivery business is growing at rates that, frankly, I did not think was possible, and we have doubled up on that,” Khosrowshahi said.

Aside from Routematch, Uber has recently bought Postmates. It is said that the company acquired Postmates as another route to offset its losses during the pandemic, which caused its ride-hailing service to plunge by 94% in March.

Yet, with the rapid growth of its food delivery business, it seems like Uber is now taking it as an opportunity to grow more even amid the current health crisis. Khosrowshahi said that Uber’s services are likely to be split by 50-50.

“We are augmenting the organic growth with acquisition […] I think we are cementing a real leadership position in what is going to be a very, very big market going forward,” the CEO of Uber told NDTV.

Images courtesy of Austin Distel/Unsplash, freestock.org/Pexels

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