Uber made a decision this week. In the report by The New York Times, Uber is planning to terminate 180 Postmates workers.
Along with this, Uber is also planning to integrate Postmates’s infrastructure with Uber eats. Uber’s decision regarding Postmates will bring some of the company’s significance in its working or functioning.
Uber is a company that is mostly famous for its on-road cab services. By the time, Uber started another franchise with it, which was Uber eats.
Now, this San Franciso-based company provides rental services, delivery options, and many more. Recently, Uber completed the purchase of Postmates. Postmates is also a San Franciso based food company.
News: Layoffs hit roughly 185 Postmates employees, or 15 percent of its workforce, as Postmates is absorbed into Uber Eats. Hundreds more may exit later as contracts end.
Comes months after Uber's $2.65 billion acquisition of Postmates.https://t.co/jbRyE55W9Y
— rat king (@MikeIsaac) January 24, 2021
Buying of Postmates by Uber
In July, Uber completed the purchase of Postmates at a price rate of $2.65 billion. After this, Uber failed in an attempt to purchase a rival food-based company called Grubhub.
Amidst this pandemic, one thing which got into effect the most was food delivery. Uber Eats was benefitted from this pandemic a lot.
The meal has become something that everyone desired during this global pandemic. This proved fruitful for UberEats as it saw a surge of 135% year-over-year. However, the company faced a drop in the bookings of the Uber cab division.
The company saw a drop of 50% in cab booking services during this global pandemic. As the lockdown was so much into action, people weren’t booking the cab services to move around.
Even at the most challenging time, relying upon self-convenience becomes the best option.
Various division of Uber is under a consolidated bid
Various divisions of Uber are experiencing a consolidated bid. A bid that the other different division except Uber eats will have to get profitable by the end of 2021.
In December, Uber sold its autonomous vehicle segment to Aurora Innovation.
The same month, it sold its Uber elevate flying taxi segment to Joby Aviation, which made Uber face severe loss. Uber has been under colossal failure by selling off such divisions.
The only solution for compensating for this loss can be working other services reasonably well by the end of 2021.
According to the latest report, the CEO of Postmates and his trained executive team has been terminated.
This decision of Uber can either be beneficial or non-beneficial for the whole company and its services.
Uber is attempting to give competition to one of its rivalry food delivery brands, Doordash. Doordash came into action last December. Even after getting launched in December, the company has shown an immense profit.
Image courtesy of Uber Eats/YouTube Screenshot