SAN FRANCISCO — Uber on Thursday laid off roughly 185 people today from its Postmates division, or about 15 p.c of Postmates’ overall work power, explained three people today with information of the actions, as the trip-hailing giant consolidates its meals delivery functions to climate the pandemic.
Most of the executive crew at Postmates, such as Bastian Lehmann, the founder and main government of the common food items shipping and delivery application, will leave the organization, reported the persons, who spoke on situation they not be named mainly because they have been not authorized to converse publicly. Uber purchased Postmates past 12 months for $2.65 billion.
Some Postmates vice presidents and other executives will depart with multimillion dollar exit offers, the people said. Some workforce may well also see minimized payment offers, the folks explained, even though others will be questioned to depart or serve out the close of their deal positions, which could lead to extra exits in coming months.
The cuts are part of a larger integration of Uber’s food items supply division, Uber Eats, with Postmates. Whilst the Postmates brand and application will continue to be different, a great deal of the guiding-the-scenes infrastructure will be melded with Uber Eats and supported by Uber Eats staff members. Pierre Dimitri Gore-Coty, the world wide head of Uber Eats, will proceed managing the put together foods delivery enterprise, the persons claimed.
An Uber spokesman, Matt Kallman, confirmed the cuts. “We are so grateful for the contributions of every single Postmates staff member,” Mr. Kallman stated. “While we are thrilled to officially welcome many of them to Uber, we are sorry to say goodbye to other individuals. We are so fired up to proceed to develop on leading of the outstanding get the job done this impressive team has already completed.”
Food items delivery has been important to Uber as its trip-hailing small business has been severely weakened by the pandemic’s effects on journey. Dara Khosrowshahi, Uber’s main govt, has pointed to meals shipping as a vivid location last calendar year, Uber Eats’ earnings overtook the profits from the ride-hailing business enterprise for the initial time as folks requested extra meals shipped to their properties.
Uber, which loses cash, laid off hundreds of staff in 2019 as it experimented with to get charges below command. The firm currently has much more than 21,000 full-time workforce its motorists are independent contractors.
When Uber has been sturdy in food stuff delivery, it has experienced to fend off deep-pocketed rivals that have sought to obtain market share by subsidizing supply expenses with promotions and special discounts.
DoorDash, which went general public in December, has fast expanded around the past couple decades and has obtained the smaller sized foodstuff delivery commence-up Caviar. Other sizeable rivals incorporate Just Consume Takeaway, which conquer out Uber to purchase Grubhub previous yr for additional than $7 billion, and Deliveroo, a supply organization that is common in Europe.