Food delivery service, Uber Eats announced that it would be shutting down its operations in Egypt, Czech Republic, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine by June 2020 and transferring its operations in the United Arab Emirates (UAE) to Careem, the Dubai-based ride-hailing and delivery company that was acquired by Uber last year.
According to Uber in a regulatory filing, “These decisions were made as part of Uber’s ongoing strategy to be in first or second position in all Eats markets by leaning into investment in some countries while exiting others.
The discontinued and transferred markets represented 1% of Eats Gross Bookings and 4% of Eats Adjusted EBITDA losses in Q1 2020. Consistent with our stated strategy, we will look to reinvest these savings in priority markets where we expect a better return on investment.”
It is noteworthy to say that at the beginning of the year, Uber Eats sold its Indian business to Zomato for $300-$350 million in an all-stock deal.
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