Uber announced on Monday it was closing down its Uber Eats operations in eight markets because they did not offer a clear route to becoming the number one or number two online food delivery operator, its stated aim for its Eats business.
Operations will be halted in Saudi Arabia, Egypt, Honduras, Romania, Czech Republic, Ukraine and Uruguay. The company will also wind down its Eats app in the UAE, but will transition to Careem, its wholly owned subsidiary operating primarily in the Middle East. “This continues our strategy of focusing our energy and resources on our top Eats markets around the world,” a spokesperson for the company said. The core rides businesses has not been affected in the above markets.
Operations will cease by June 4 in the markets, apart from UAE, where they will transition to Careem. According to the company, this move will affect about 50 full-time roles. The company has not release how many gig workers this affects.
Uber said the discontinued and transferred markets represented 1% of Eats gross bookings and 4% of Eats adjusted core earnings losses in Q1 2020.
Not the First Time Uber Eats Shuts Down Operations
This is not the first time that Uber makes a decision to consolidate its food delivery operations. Earlier this year, the company halted its operations in India and sold Uber Eats to its competitor Zomato.
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