SAN FRANCISCO – Uber on Thursday fired about 185 people from its Postmate division, or about 15 percent of Postmate’s total workforce, said three people were knowledgeable about these actions, as The ride-hailing giant strengthened its food delivery operations to overcome a pandemic.
Most of Postmate’s executive team, including Bastian Lehmann, founder and CEO of the popular food delivery app, will leave the company, they said. Last year, Uber bought Postmate for $ 2.65 billion.
Some Postmate vice presidents and other executives will leave with a multimillion-dollar exit package, these people said. These people say some employees may also see reduced pay packages, while others will be asked to leave or work at the end of their contractual positions, which could lead to more jobs in the coming months.
The cuts are part of a larger merger between Uber’s food delivery division, Uber Eats, and Postmate. Although the Postmate brand and app will remain separate, much of the infrastructure behind it will be combined with Uber Eats and supported by Uber Eats employees. Pierre Dimitri Gore-Coty, Uber Eats’ global head, will continue to run the fusion-delivery business, the people said.
Uber spokeswoman Matt Kallman confirmed the cuts. “We are grateful for the contributions made by everyone in the Postmate team,” said Kallman. “While we are delighted to officially welcome so many of them to Uber, we regret having to say goodbye to the others. We are thrilled to continue building on the pinnacle of the incredible work this outstanding team has accomplished. “
Food delivery has played an important role for Uber as its ride-hailing business has been severely weakened due to the impact of the epidemic on travel. Dara Khosrowshahi, Uber’s chief executive, pointed out food delivery as a bright spot; Last year, Uber Eats’ revenue surpassed that of its ride-hailing business for the first time ever when people ordered more meals delivered to their homes.
Uber, the company at a loss, laid off hundreds of employees in 2019 for trying to control costs. The company currently has more than 21,000 full-time employees; Its drivers are independent contractors.
While Uber has a strong position in food delivery, Uber has had to fend off deep-pocketed rivals that are looking to gain market share by subsidizing delivery costs with promotions and discounts.
DoorDash, which went public in December, has rapidly expanded over the past few years and acquired smaller food delivery startup Caviar. Other significant 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.