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Uber lays off 15% of Postmates workforce two months after acquiring the company

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Uber lays off 15% of Postmates workforce two months after acquiring the company for $2.65B – as founder Bastian Lehmann leaves the company

  • Uber last week laid off 185 people from Postmates, or about 15% of workforce
  • Postmates CEO Bastian Lehmann will also be leaving, though he was not laid off
  • Uber completed the acquisition of Postmates for $2.65 billion in early December
  • Postmates and Uber Eats will remain as separate apps with integrated backend 

Uber has laid off about 185 people, or 15 percent of the workforce, from Postmates, the delivery app startup that it acquired in December for $2.65 billion.

The layoffs last week, which were first reported by the New York Times, were confirmed by an Uber spokesperson speaking to DailyMail.com on Tuesday.

Postmates founder and CEO Bastian Lehman will also be departing the company after a period of consulting on the transition, though he was not among the layoffs, Uber confirmed. 

Postmates and Uber’s delivery service Uber Eats will maintain separate branding and apps, but their backend functions will be increasingly integrated, likely making many roles redundant.

Uber has laid off about 185 people, or 15 percent of the workforce, from Postmates. Above, a Postmates sign is seen outside a San Francisco restaurant last year

Some Postmates vice presidents and other executives will being leaving the company with multi-million exit packages, the Times reported. 

‘We are so grateful for the contributions of every Postmates team member,’ an Uber spokesperson said in a statement.

‘While we are thrilled to officially welcome many of them to Uber, we are sorry to say goodbye to others. We are so excited to continue to build on top of the incredible work this remarkable team has already accomplished,’ the spokesperson said.

Uber closed its acquisition of Postmates on December 1, after federal regulators scrutinized the deal over antitrust concerns but ultimately approved it.

Postmates founder and CEO Bastian Lehman (above) will also be departing the company after a period of consulting on the transition, though he was not among the layoffs

Postmates founder and CEO Bastian Lehman (above) will also be departing the company after a period of consulting on the transition, though he was not among the layoffs

Food delivery has been an important and booming business for Uber in the pandemic, even as its ride service slumped with many people sheltering at home. 

Revenue at Uber’s delivery unit, including Uber Eats, more than doubled in the third quarter to $1.45 billion, its highest ever, but the unit continues to lose money despite narrowing losses over the past quarters. 

But the company faces significant competition from well-funded competitors, including DoorDash which went public in December, and startup Caviar. 

Uber aims to become profitable by the end of the year, and has been cutting costs. 

Last month, the company spun off its automated car and flying taxi divisions, which were both significant cost centers.

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