SAN FRANCISCO — Uber on Thursday laid off roughly 185 folks from its Postmates division, or about 15 p.c of Postmates’ complete work power, mentioned three folks with information of the actions, because the ride-hailing large consolidates its meals supply operations to climate the pandemic.
The layoffs affected many of the govt group at Postmates, together with Bastian Lehmann, the founder and chief govt of the favored meals supply app, mentioned the folks, who spoke on situation they not be named as a result of they weren’t approved to talk publicly. Uber purchased Postmates final year for $2.65 billion.
Some Postmates vice presidents and different executives will go away with multimillion greenback exit packages, the folks mentioned. Some staff may additionally see diminished compensation packages, the folks mentioned, whereas others shall be requested to go away or serve out the tip 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. While the Postmates model and app will stay separate, a lot of the behind-the-scenes infrastructure shall be melded with Uber Eats and supported by Uber Eats staff. Pierre Dimitri Gore-Coty, the worldwide head of Uber Eats, will proceed working the mixed meals supply business, the folks mentioned.
An Uber spokesman, Matt Kallman, confirmed the cuts. “We are so grateful for the contributions of every Postmates team member,” Mr. Kallman mentioned. “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 business has been severely weakened by the pandemic’s results on journey. Dara Khosrowshahi, Uber’s chief govt, has pointed to meals supply as a brilliant spot; final year, Uber Eats’ income overtook the income from the ride-hailing business for the primary time as folks ordered extra meals delivered to their properties.
Uber, which loses money, laid off a whole bunch of staff in 2019 because it tried to get prices below management. The company at the moment has greater than 21,000 full-time staff; its drivers are impartial contractors.
While Uber has been robust in meals supply, it has needed to fend off deep-pocketed rivals which have sought to realize market share by subsidizing 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 start-up Caviar. Other vital opponents embrace Just Eat Takeaway, which beat out Uber to amass Grubhub final year for greater than $7 billion, and Deliveroo, a supply company that’s standard in Europe.