SAN FRANCISCO – Uber on Thursday fired about 185 people from its Postmates division, or about 15 percent of the Postmates total workforce, said three people with knowledge of the actions, as the touring giant consolidates its operations. delivery of food to face pandemic.
Most of Postmates’ executive team, including Bastian Lehmann, the founder and chief executive of the popular food delivery app, will leave the company, people said, who spoke on condition that they were not identified 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 multimillion dollar exit packages, people said. Some employees may also see reduced pay packages, people said, while others will be asked to leave or serve at the end of their contractual positions, which could lead to more layoffs in the coming months.
The cuts are part of a larger integration of Uber’s food delivery division, Uber Eats, with Postmates. While the Postmates brand and app remain separate, much of the backstage infrastructure will be combined with Uber Eats and supported by Uber Eats employees. Pierre Dimitri Gore-Coty, global head of Uber Eats, will continue to run the combined food delivery business, people said.
An Uber spokesman, Matt Kallman, confirmed the cuts. “We are very grateful for the contributions of all members of the Postmates team,” said Kallman. “While we are thrilled to officially welcome many of them to Uber, we are sorry to say goodbye to others. We are very excited to continue to develop the incredible work that this remarkable team has already done. “
Food delivery has been crucial for Uber, as its hitchhiking business has been severely weakened by the effects of the pandemic on travel. Uber chief executive Dara Khosrowshahi pointed to the delivery of food as a plus; Last year, Uber Eats revenue surpassed revenue from the hitchhiking 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 while trying to control costs. The company currently has more than 21,000 full-time employees; its drivers are hired independently.
Although Uber was strong in delivering food, it had to fend off rivals with large pockets that sought to gain market share by subsidizing delivery costs with promotions and discounts.
DoorDash, which went public in December, has expanded rapidly in recent years and has acquired the small food delivery startup Caviar. Other major competitors include Just Eat Takeaway, which beat Uber to acquire Grubhub last year for more than $ 7 billion, and Deliveroo, a delivery company that is popular in Europe.