Uber’s food delivery platform, Uber Eats has announced plans to exit seven markets across the world, with the company reiterating that the changes are not in any way related to the COVID-19 pandemic.
The markets in context are Eqypt, Saudi Arabia, Romania, Ukraine, Honduras, Uruguay, and the Czech Republic. The exits will take effect from 4th June 2020.
Furthermore, the company is also transferring its Uber Eats operations in the United Arab Emirates (UAE) to Careem, its ride-hailing subsidiary that’s mostly focused on the Middle East.
According to the company, as techcrunch reports, the changes are part of its strategy to be in first or second position in all Eats markets through focusing on investment in some countries, while exiting others.
The company already exited the Eats business in India earlier on this year, then later launched new delivery services, dubbed Uber Connect and Uber Direct, after the COVID-19 pandemic had a negative impact on their ride-hailing services.
Uber Direct offers deliveries from shops like pharmacies and pet stores, while Uber Connect provides a same-day courier service to let users send items to one another.
The company’s statement shows that the exited markets, as well as the transferred ones, represented only 1% of Eats’ Gross Bookings and 4% of Eats Adjusted EBITDA losses in Q1 2020. Therefore, the firm is looking to reinvest the savings in priority markets where it expects a greater return on investment,
Uber Technologies Inc. is an American multinational ridesharing company. Its services include peer-to-peer ridesharing, ride service hailing, food delivery, and a bicycle-sharing system. The company is based in San Francisco and has operations in over 785 metropolitan areas worldwide.
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