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Uber eats drivers in Lisbon, Portugal.
Uber Eats announced that it plans to end its operations in eight markets by June 4. The information comes from a regulatory filing stating that the markets represent 1% of Eats’ gross reserves.
Uber Eats leaves the Czech Republic, Honduras, Egypt, Romania, Ukraine, Saudi Arabia, and Uruguay. The company is also transferring Eats to its subsidiary platform Careem in the United Arab Emirates, so the Uber Eats app will stop working in that country after a few weeks.
According to the regulatory filing of the Uber Securities and Exchange Commission (SEC), “These decisions were made as part of Uber’s ongoing strategy to rank first or second in all Eats markets by investing in some countries and get out of others. “
The regulatory filing explained what Uber plans to do with the savings: “Discontinued and transferred markets accounted for 1% of Eats ‘gross reserves and 4% of Eats’ adjusted EBITDA losses in the first quarter of 2020. Agree With our stated strategy, we will seek to reinvest these savings in priority markets where we expect a better return on investment. “
Uber eats the bicycle dealer in Krakow, Poland.
Uber has indicated that the decision to exit these eight markets is not related to the coronavirus outbreak. Instead, the company is making the changes because its goal is to be the number one or two delivery service in a market. If this is not possible, Uber prefers to leave the market rather than compete with others.
This is not the first time that Uber has left a market, it is not number one, nor has it sold its Eats business to a competitor. In January, the company announced that it sold its Indian food delivery business to Zomato, which was one of the country’s largest food apps.
“Our Uber Eats team in India has accomplished an incredible amount in the past two years, and I couldn’t be prouder of their ingenuity and dedication. India remains an exceptionally important market for Uber and we will continue to invest in the growth of our local attractions. .Business, which is already the clear category leader. We are very impressed by Zomato’s ability to grow rapidly in capital efficient ways and look forward to their continued success, “said Uber CEO Dara Khosrowshahi.
Although Uber Eats is successful in many markets, it is not dominating the entire world. In some areas, such as the case of India, Zomato was more popular and Uber had problems. Considering that this appears to be a popular strategy for the company, consumers can see Uber Eats abandon other markets.
