Uber lays off 15% of Postmates’ workforce just 3 months after buying the food delivery app. Postmates founder Bastian Lehmann is reportedly among those let go.
Postmates co-founder & CEO Bastian Lehmann.
Steve Jennings / Stringer
- Uber laid off around 185 Postmates employees Thursday, New York Times sources said.
- This included Bastian Lehmann, the founder and CEO of the Food Delivery App.
- Uber bought the app in 2020, and the layoffs are flowing into Uber’s plan to better integrate Postmates and Uber Eats.
- You can find more stories on the Business Insider homepage.
Less than three months after regulators approved the $ 2.65 billion purchase of Postmates, Uber laid off around 15% of the app’s workforce for grocery delivery, according to The New York Times.
The 185 layoffs included Postmates’ founder and CEO Bastian Lehmann, as well as most other executives, three people familiar with the decision told the Times. Some of these will leave the company with multi-million dollar exit packages, the sources said.
More could leave in the next few months if Uber doesn’t renew their contracts, the sources said.
Uber confirmed the layoffs for publication, but did not confirm whether Lehmann was among the layoffs.
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Uber operates Uber Eats alongside Postmates. Although both run as separate companies with their own branding, the layoffs feed into Uber’s plan to better integrate the two grocery delivery services, the sources said.
“We are very grateful for contributions from all of the Postmates team members,” an Uber spokesman told The Times.
“While we’re thrilled to officially welcome many of them to Uber, we’re sadly having to say goodbye to others. We look forward to continuing to build on the incredible work this remarkable team has already done.”
Uber did not immediately respond to Insiders’ request for comment as to whether Lehmann was among those affected.
Food delivery services boomed during the pandemic. Uber has traditionally generated most of its revenue from the ride-hail business, but during the pandemic, which saw fewer people traveling, Uber Eats’s revenue exceeded ride-hail revenue for the first time.
The lack of travel has hit Uber hard. For the quarter ended September 31, total losses were $ 1.09 billion. The company has not yet made a profit in its more than 10-year history.
The downsizing at Postmates is in contrast to many other delivery services and fast food restaurants that have hired additional workers to meet accelerated demand during the pandemic. In just one day in March, Pizza Hut and Papa John’s announced around 30,000 new roles in the US.
Earlier this month, Amazon-backed grocery shipping company Deliveroo, which competes with Uber Eats in the UK, was valued at more than $ 7 billion after raising $ 180 million in fresh capital.