MCD McDonalds Corp

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)

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