Uber Technologies Inc. said it will close a parcel and parcel delivery service called Rush, which was once considered a viable threat to everything
to small couriers
The service will be discontinued at the end of June, Uber told customers and dealers on Friday. "We are grateful to our partners and hope that the next three months will enable them to meet their delivery needs," a spokesperson said in a statement. He gave no reason for the closure of the unit.
The company had high hopes for Rush and expanded it to San Francisco and Chicago in 201
and Nordstrom for deliveries in less than an hour or two.
But Uber never expanded beyond the first three cities, focusing heavily on its efforts of the Eats restaurant delivery service, which now has over 200 locations worldwide. Eats signed with
delivered articles like Big Macs and French fries, helping accelerate the growth of the Uber division.
Uber faced strong competition from startups and major rivals on the same day, including Deliv Inc. and
The former CEO of the company,
Rush sees it as part of an "urban logistics network" in which its drivers would carry passengers, food and parcels, perhaps even simultaneously.
Uber's new CEO,
has led the sale of underperforming companies to save costs as the company prepares to go public next year. In recent months, Uber has sold its loss-making car leasing business in the US and its Southeast Asian businesses to Rival Grab Inc.