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About Shutter Rush delivery service



Uber Technologies Inc. said it will close a parcel and parcel delivery service called Rush, which was once considered a viable threat to everything

FedEx
Corp.


FDX 2.26%

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

5 after a year of testing in New York City. It linked Uber drivers and messengers with companies like

Walmart shops
Inc.


WMT 1.37%

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

MC Donalds
Corp.


MCD -1.28%

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

Amazon.de
Inc.

The former CEO of the company,

Travis Kalanick,

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,

Dara Khosrowshahi,

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.


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