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SAN FRANCISCO – Uber on Thursday laid off about 185 people from its Postmates division, or about 15% of the total Postmates workforce, three people familiar with the actions said, as the rideshare giant consolidates its food delivery operations to resist the pandemic.
Most of Postmates’ management team, including Bastian Lehmann, founder and CEO of the popular food delivery app, will be leaving the company, said the people, who spoke on condition that they were not. appointed because they were not authorized to speak publicly. Uber bought Postmates last year for $ 2.65 billion.
Some Postmates vice presidents and other executives will leave with multi-million dollar release packages, the people said. Some employees may also see reduced pay plans, people said, while others will be asked to leave or quit their jobs at the end of their contracts, which could lead to more departures in the coming months.
The discounts are part of a larger integration of Uber’s food delivery division, Uber Eats, with Postmates. While the Postmates brand and app will remain separate, much of the behind-the-scenes infrastructure will be merged with Uber Eats and supported by Uber Eats employees. Pierre Dimitri Gore-Coty, global director of Uber Eats, will continue to manage the combined food delivery business, the people said.
Uber spokesman Matt Kallman confirmed the cuts. “We are very grateful for the contributions of each member of the Postmates team,” said Mr. Kallman. “While we’re excited to officially welcome many of them to Uber, we’re sorry to say goodbye to others. We are delighted to continue to build on the incredible work this remarkable team has already accomplished.
Food delivery has been crucial for Uber as its ridesharing business has been severely weakened by the effects of the pandemic on travel. Dara Khosrowshahi, general manager of Uber, said the food delivery was a positive; Last year, Uber Eats revenue exceeded revenue from the ridesharing business for the first time, as people ordered more meals delivered to their homes.
Money-losing Uber laid off hundreds of workers in 2019 as it tried to keep costs under control. The company currently has over 21,000 full-time employees; its drivers are independent contractors.
Although Uber was strong at delivering food, it had to fend off deep-pocketed rivals who were looking to gain market share by subsidizing delivery costs with promotions and discounts.
DoorDash, which went public in December, has grown rapidly in recent years and has acquired the smallest food delivery startup Caviar. Other big competitors include Just Eat Takeaway, which beat Uber to acquire Grubhub last year for more than $ 7 billion, and Deliveroo, a popular delivery company in Europe.
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