Uber Technologies Inc. has laid off around 185 people, approximately 15% of staff at Postmates Inc. after having finalized its acquisition of the company in December.

The New York Times reported that Uber announced the cuts to staff on Thursday, Jan. 21, as part of an effort to consolidate its food delivery operations to weather the pandemic. The cuts are said to include most of the executive team at Postmates, including founder and Chief Executive Officer Bastian Lehmann, some vice presidents and other executives.

Some employees reportedly were offered reduced compensation packages, while others will be asked to leave or serve out the end of their contract positions, which could lead to more exits in coming months.

Uber made an offer to acquire Postmates in June before coming to terms with the company with a $2.65 billion all-stock deal in July. Uber had previously attempted to acquire GrubHub in May and was also claimed to have held merger talks with DoorDash Inc. in 2019. All three companies are the major players in the U.S. delivery market along with Uber Eats, so in attempting to acquire one of them, Uber was looking at market consolidation opportunities.

With the acquisition of Postmates finalized, the Postmates brand and app will remain as a separate entity, but much of the running of the company is being folded into Uber Eats, providing cost savings for the combined companies.

As of December, DoorDash held a 52% market share followed by Uber Eats with 22%, Grubhub 18% and Postmates 7%, according to data from Second Measure Inc., giving the combined Uber Eats/Postmates a 31% potential market share.

Food delivery has been the standout division of Uber during the COVID-19 pandemic. In its third-quarter earnings report, Uber’s delivery division, which includes Uber Eats, posted a 134% revenue jump, to $8.55 billion. The Uber Eats division first passed Uber’s ride-hailing business for revenue in the second quarter.

Photo: Postmates