On demand delivery service Postmates has slashed dozens of jobs and closed its Mexico City office amid rising investor concerns about several high profile gig economy flame-outs that burned through cash this year.
Postmates has cut staff in several major U.S. markets and confirmed that it closed its Mexico City office.
“We made the difficult decision to end operations in Mexico City as we focus on our continued growth in the U.S.,” a Postmates spokesperson told Mobile Payments Today via email. “We continually review our business to ensure that staffing is aligned with current business needs and made small adjustments as a result.”
She said the company will support the affected employees in Mexico City and thanked them for helping grow the Mexico City presence the last two years. She said the company will focus on growing its remaining 1,300 employees, which serve 80% of the U.S., including its No. 1 position in Los Angeles and the Southwest.
She declined to comment on a report that the company may be looking for a buyer, saying the company does not comment on rumors.
Postmates has expanded rapidly in the U.S. against rivals DoorDash and Grubhub, launching in-stadium partnerships with the New York Yankees and L.A. Dodgers, part of a larger trend towards mobile ordering in sports venues.
Cover image: Postmates.