Less than 3 months following regulators authorised its $2.65 billion order of Postmates, Uber has laid off around 15% of the food stuff supply app’s workforce, The New York Instances claimed.
Among the 185 people today exiting the business are Postmates founder and CEO Bastian Lehmann, as very well as most of the other executives, 3 persons common with the decision informed the Situations. Some of these will go away the organization with multimillion-greenback exit deals, the resources stated.
Additional could go away more than the future few months if Uber does not renew their contracts, the resources claimed.
A agent for Uber Eats confirmed to Insider that Lehmann will be leaving the organization, but clarified that it was his choice and different from the layoffs.
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Uber operates Uber Eats alongside Postmates. Nevertheless both operate as independent ventures with their individual branding, the layoffs feed into Uber’s plan to far better combine the two food stuff shipping and delivery expert services, the resources explained.
“We are so grateful for the contributions of just about every Postmates workforce member,” an Uber spokesperson told the Occasions.
“When we are thrilled to officially welcome quite a few of them to Uber, we are sorry to say goodbye to some others. We are so fired up to continue on to develop on top rated of the outstanding perform this extraordinary staff has by now completed.”
Uber did not instantly answer to Insider’s ask for for comment on no matter whether Lehmann was among those impacted.
All through the pandemic, foodstuff shipping and delivery expert services have boomed. Uber has traditionally produced the bulk of its revenues from its experience-hailing organization, but all through the pandemic, with less men and women traveling, Uber Eats revenues overtook its trip-hailing revenues for the 1st at any time time.
The deficiency of journey has strike Uber difficult. In the quarter to September 31, it recorded $1.09 billion in complete losses. The enterprise has still to transform a gain in its far more than 10-12 months record.
The task cuts at Postmates are in distinction to quite a few other shipping products and services and fast food items places to eat, which have taken on added workers to meet accelerated desire during the pandemic. On just a single working day in March, Pizza Hut and Papa John’s declared about 30,000 new roles throughout the US.
Before this month, Amazon-backed food delivery company Deliveroo, which rivals Uber Eats in the British isles, was valued at much more than $7 billion just after raising $180 million in new cash.
Axel Springer, Insider Inc.’s mum or dad firm, is an trader in Uber.