Uber Technologies Inc UBER on Thursday laid off roughly 185 people from its Postmates division, the New York Times has reported.
What Happened: Uber bought Postmates last year for $2.65 billion. According to the New York Times, the layoffs affected most of the executive team at Postmates, including founder and CEO Bastian Lehmann and some vice presidents of the company.
The number of people laid off equals about 15% of Postmates' workforce, the newspaper said.
Why It Matters: Uber’s rival companies are gaining market share in the food delivery business.
DoorDash Inc DASH, which went public in December, has expanded its business by acquiring food delivery startup Caviar. Another competitor Just Eat acquired Grubhub for more than $7 billion in 2020.
Price Action: Uber closed down 2.65% on Friday, to $54.31.
Photo courtesy of Postmates.
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