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Uber’s home service known as Uber Eats, which is available in 12 Colombian cities, will stop operating in the country next month after almost 4 years of arriving, and said goodbye to its users thanking them for their support.
The company assured that will not leave the country completely, since its main transport service, Uber, will continue its work normally. “This is a difficult situation, which does not change our commitment to Colombia, where we will continue to provide solutions through the Uber application,” the company said in a statement.
Likewise, the Uber Flash service, which arrived in the country this year and is exclusively for sending packages, will operate normally in Colombia even after November 22.
In the notification, which is in the tweet below, the organization stated that its priority “is to minimize as much as possible the impact on associated restaurants, delivery partners and users”; This is due to the economic impact that the COVID-19 pandemic has had on food businesses.
“Uber Eats”:
Because it will no longer be available in Argentina and Colombia pic.twitter.com/LN8F6AHnVp– Why is it a trend? (@becausetrend) October 22, 2020
Why is Uber Eats leaving Colombia?
The main reason for leaving Uber’s home service has to do with reinvention, as they have thought “redirect and invest resources in other markets“Said Semana, citing the company.
Another reason for the departure lies in the company’s figures. According to the aforementioned media, in June of this year, Uber Eats suspended its services in the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Ukraine and Uruguay because they only represented 1% of orders in the world and they caused losses of 4%.
Additionally, an August 2020 report indicated that the organization’s revenue was down 29% in the second quarter, and the company lost about $ 1.8 billion in totalnoted the portal in its publication.
In this vein, the announcement of the exit of Uber Eats agrees with the plans to lead the global market, indicated La República, since, according to Miguel Mc Allister, CEO of Merqueo, “Uber promised to take the business of Uber Eats to be profitable in 2021 globally. This generated that in countries where they did not have a good market position they would rather close”.
Despite the fact that 2020 came with the same growth trend as last year, in which 16% of sales were made by homes, Uber Eats did not resist the competition of other applications such as Rappi, which leads the market with a 61% preference; Domicilios.com, with 26%; and iFood, with 17%, added the named outlet.
However, according to Semana, the company is not closed to the possibility of returning to the country and to Argentina, which will also say goodbye to the food delivery platform next month, as the firm said that “Latin America continues to be a fundamental source of growth and opportunities for Uber Eats globally ”.
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