The layoffs come as Uber melds its Eats platform with Postmates. Although there will still be a distinct Postmates app, it’ll increasingly run on Uber Eats technology. There just isn’t the need to have as many team members supporting Postmates, as unfortunate as the human toll will be.
There’s also the simple matter of survival in the current climate. Uber was already trimming costs before the pandemic, and the virus only exacerbated the situation as ridesharing demand plummeted. The company recently sold its self-driving car and flying taxi divisions in a bid to cut unnecessary expenses. Add consolidation among rivals, such as Just Eat’s acquisition of Grubhub, and Uber faces particularly strong pressure to reduce its spending wherever possible.
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.