Uber cuts Postmates by 15%

The layoffs come as Uber merges its Eats platform with Postmates. While there is still a separate Postmates app, it will increasingly run on Uber Eats technology. You just don’t have to have so many team members to support Postmates, as miserable as the human toll is.

There is also the simple question of survival in today’s climate. Uber was already cutting costs before the pandemic, and the virus has only exacerbated the situation as demand for ridesharing plummeted. The company recently sold its self-driving car and flying taxi divisions in an effort to cut unnecessary expenses. Add in a consolidation among rivals, like Just Eat’s acquisition of Grubhub, and Uber faces particularly strong pressure to cut spending where possible.