The layoffs come as Uber melds its Eats platform with Postmates. Though there’ll nonetheless be a definite Postmates app, it’ll more and more run on Uber Eats know-how. There simply isn’t the necessity to have as many group members supporting Postmates, as unlucky because the human toll might be.
There’s additionally the straightforward matter of survival within the present local weather. Uber was already trimming prices earlier than the pandemic, and the virus solely exacerbated the state of affairs as ridesharing demand plummeted. The corporate just lately bought its self-driving car and flying taxi divisions in a bid to chop pointless bills. Add consolidation amongst rivals, similar to Just Eat’s acquisition of Grubhub, and Uber faces significantly sturdy strain to cut back its spending wherever attainable.