The transport and mobility firm Uber has decided to close the operations of its home food delivery branch, Uber Eats, in eight countries with the aim of focusing its efforts on those markets where it has the potential to be the first or second largest market player.
As reported on Monday to the United States Securities and Exchange Commission (SEC), Uber has decided to close the operations of Uber Eats in the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine . The cessation of operations will take place on June 4.
It has also decided to transfer all its operations in the United Arab Emirates to Careem, its subsidiary in the Middle East. The transition from one platform to another will take place “in the coming weeks”. Uber bought Careem for $ 3.1 billion (€ 2.836 million) in cash and shares just over a year ago.
“These decisions have been made as part of Uber’s current strategy of being in first or second position in all Eats markets by investing in some countries and exiting others,” the company explained.
Uber Eats’ business in these markets was in the minority, the company explained. Specifically, they accounted for 1% of total orders through Uber Eats, as well as 4% of their gross operating profit (Ebitda) in the first quarter of 2020.
“Consistent with our strategy, we will reinvest the savings [from these operations] in the priority markets where we hope to achieve a better return on our investment,” explained the company led by Dara Khosrowshahi.