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Home Gadgets Uber, after buying Postmates, lays off more than 180 employees

Uber, after buying Postmates, lays off more than 180 employees

San Francisco: Uber Technologies Inc. on Thursday laid off roughly 185 individuals from its Postmates division, or about 15% of Postmates’ complete workforce, stated three individuals with data of the actions, because the ride-hailing big consolidates its meals supply operations to climate the pandemic.

Many of the government staff at Postmates, together with Bastian Lehmann, founder and CEO of the favored meals supply app, will go away the corporate, stated the individuals, who spoke on situation they not be named as a result of they weren’t licensed to talk publicly. Uber purchased Postmates final yr for $2.65 billion.

Some Postmates vice presidents and different executives will go away with multimillion-dollar exit packages, the individuals stated. Some staff can also see decreased compensation packages, the individuals stated, whereas others will likely be requested to go away or serve out the top of their contract positions, which may result in extra exits in coming months.

The cuts are half of a bigger integration of Uber’s meals supply division, Uber Eats, with Postmates. Whereas the Postmates model and app will stay separate, a lot of the behind-the-scenes infrastructure will likely be melded with Uber Eats and supported by Uber Eats staff. Pierre Dimitri Gore-Coty, world head of Uber Eats, will proceed working the mixed meals supply enterprise, the individuals stated.

An Uber spokesman, Matt Kallman, confirmed the cuts. “We’re so grateful for the contributions of each Postmates staff member,” Kallman stated. “Whereas we’re thrilled to formally welcome a lot of them to Uber, we’re sorry to say goodbye to others. We’re so excited to proceed to construct on prime of the unbelievable work this outstanding staff has already completed.”

Meals supply has been essential to Uber as its ride-hailing enterprise has been severely weakened by the pandemic’s results on journey. Dara Khosrowshahi, Uber’s CEO, has pointed to meals supply as a brilliant spot; final yr, Uber Eats’ income overtook the income from the ride-hailing enterprise for the primary time as individuals ordered extra meals delivered to their houses.

Uber, which loses cash, laid off tons of of staff in 2019 because it tried to get prices underneath management. The corporate has greater than 21,000 full-time staff; its drivers are impartial contractors.

Whereas Uber has been sturdy in meals supply, it has needed to fend off deep-pocketed rivals which have sought to achieve market share by subsidising supply prices with promotions and reductions.

DoorDash, which went public in December, has quickly expanded over the previous few years and has acquired the smaller meals supply startup Caviar. Different important opponents embrace Simply Eat Takeaway, which beat out Uber to accumulate Grubhub final yr for greater than $7 billion, and Deliveroo, a supply firm that’s widespread in Europe.

Uber has trimmed different companies in hopes of turning into worthwhile by the top of this yr. In December, it shed its autonomous autos division, Uber ATG, and jettisoned its flying automotive operation, Uber Elevate. Each efforts have been expensive.

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