Uber, After Buying Postmates, Lays Off More Than 180 Employees

SAN FRANCISCO — Uber on Thursday laid off roughly 185 folks from its Postmates division, or about 15 % of Postmates’ complete work pressure, stated three folks with information of the actions, because the ride-hailing big consolidates its meals supply operations to climate the pandemic.

Most of the chief staff at Postmates, together with Bastian Lehmann, the founder and chief government of the favored meals supply app, will depart the corporate, stated the folks, who spoke on situation they not be named as a result of they weren’t licensed to talk publicly. Uber purchased Postmates final 12 months for $2.65 billion.

Some Postmates vice presidents and different executives will depart with multimillion greenback exit packages, the folks stated. Some staff might also see diminished compensation packages, the folks stated, whereas others will likely be requested to go away or serve out the top of their contract positions, which might 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. While 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, the worldwide head of Uber Eats, will proceed operating the mixed meals supply enterprise, the folks stated.

An Uber spokesman, Matt Kallman, confirmed the cuts. “We are so grateful for the contributions of every Postmates team member,” Mr. Kallman stated. “While we are thrilled to officially welcome many of them to Uber, we are sorry to say goodbye to others. We are so excited to continue to build on top of the incredible work this remarkable team has already accomplished.”

Food supply has been essential to Uber as its ride-hailing enterprise has been severely weakened by the pandemic’s effects on travel. Dara Khosrowshahi, Uber’s chief executive, has pointed to food delivery as a bright spot; last year, Uber Eats’ revenue overtook the revenue from the ride-hailing business for the first time as people ordered more meals delivered to their homes.

Uber, which loses money, laid off hundreds of employees in 2019 as it tried to get costs under control. The company currently has more than 21,000 full-time employees; its drivers are independent contractors.

While Uber has been strong in food delivery, it has had to fend off deep-pocketed rivals that have sought to gain market share by subsidizing delivery costs with promotions and discounts.

DoorDash, which went public in December, has rapidly expanded over the past few years and has acquired the smaller food delivery start-up Caviar. Other significant competitors include Just Eat Takeaway, which beat out Uber to acquire Grubhub last year for more than $7 billion, and Deliveroo, a delivery company that is popular in Europe.

Source link Nytimes.com

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