Uber to Shutter Rush Delivery Service
March 30 2018 - 10:11PM
Dow Jones News
By Greg Bensinger
Uber Technologies Inc. said it will shutter a same-day parcel
and package delivery service called Rush that once was viewed as a
viable threat to everything from FedEx Corp. to small couriers.
The service will cease at the end of June, Uber told customers
and vendors on Friday. "We're thankful for our partners and hope
the next three months will allow them to make arrangements for
their delivery needs," said a spokesman in a statement. He didn't
provide a reason for the unit's closure.
The company once had high hopes for Rush, expanding it to San
Francisco and Chicago in 2015 after a year of testing in New York
City. It connected Uber drivers and bike messengers with companies
such as Walmart Stores Inc. and Nordstrom for deliveries in as fast
as an hour or two.
But Uber never expanded beyond the initial three cities, and
focused much of its efforts on the Eats restaurant delivery
service, which now has over 200 locations world-wide. Eats signed
on with McDonalds Corp. to deliver items like Big Macs and fries,
helping speed the Uber division's growth.
Uber also faced stiff competition in same-day deliveries from a
variety of startups and larger rivals, including Deliv Inc. and
Amazon.com Inc.
The company's former CEO, Travis Kalanick, viewed Rush as part
of an "urban logistics network" in which its drivers would
transport passengers, food and packages, perhaps even
simultaneously.
Uber's new CEO, Dara Khosrowshahi, has directed the sale of
underperforming businesses to save costs as the company prepares
for an initial public offering as soon as next year. In recent
months, Uber has sold its money-losing U.S. car-leasing business
and its Southeast Asian operations to rival Grab Inc.
(END) Dow Jones Newswires
March 30, 2018 21:56 ET (01:56 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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