Uber Eats is closing down its business operations in eight markets including Egypt, Ukraine, Uruguay, Saudi Arabia, Romania, Honduras and Czech republic. the closure is pegged on stiff competition in said markets as they did not offer a clear route to become among the top online food delivery operator.
In a statement on the exit, Uber said: “We have made the decision to discontinue operations in the eight countries and to wind down the Eats app and transition operations to Careem in U.A.E. This continues our strategy of focusing our energy and resources on our top Eats markets around the world.”
According to Uber, the discontinued and transferred markets represent 1% of Eats gross bookings. And 4% of Eats adjusted core earnings losses accrued in Q1 2020. “We are Consistent with our stated strategy. We will look to reinvest these savings in priority markets where we expect a better return on investment.”
It’s also transferring its Uber Eats business operations in the United Arab Emirates (UAE) to Careem, its wholly-owned ride-hailing subsidiary in the Middle East.
“Consumers and restaurants using the Uber Eats app in the UAE will be transitioned to the Careem platform in the coming weeks, after which the Uber Eats app will no longer be available,”
Operations in the markets will cease by 4th June. The move will affect about 50-full time jobs. Uber Rides operations in the countries will not be affected.
Additionally, the statement confirms that the changes are not related to the coronavirus pandemic. But rather related to an ongoing “strategy of record” for the company to hold a first or second position in all existing markets. Which means it’s leaning into investment in some countries while exiting others.