Page 14 - bne_Tech_05_2020

Fintech & E-commerce
May 2020 www.intellinews.com I Page 14
Bolt to enter Romania’s food delivery market as Uber Eats exits
Uber will close down its Uber Eats food delivery service operations in eight markets, including Romania, which it entered nearly two years ago, the company announced on May 4.
On the same day, local media reported that Estonian ride-hailing platform Bolt, active on the Romanian market since 2017, plans to launch its food delivery service Bolt Food in the country as well.
Uber came to the decision to leave Romania
and the other countries, which include the
Czech Republic and Ukraine, because it had
no perspective of becoming the number one or number two online food delivery operator in these countries. It will focus on core markets, it said.
Uber Eats announced to its Romanian customers that it would cease operations on the local market starting June 3.
"We have decided to discontinue Uber Eats in Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Ukraine, and Uruguay, and to wind down the Eats app and transition operations to Careem in UAE," a Uber spokesman said.
These decisions are part of Uber's strategy to rank as the first or second player in all markets where
Uber Eats operates, focusing on investing in certain countries and giving up on others, the company explained. The markets subject to the decision have a 1% contribution to total gross order volume and 4% Ebitda losses in the first quarter.
Uber Eats' main competitors in Romania are Glovo, foodpanda, and Takeaway.com, so far, but the market might welcome a new player soon, Ziarul Financiar daily reported. Bolt plans to launch its food delivery service Bolt Food in the country as well, the daily revealed.
"Yes, we are preparing the launch of Bolt Food in Romania. From the beginning of the epidemic, we have sought to create new opportunities for drivers on our platform and delivery services have been among them. We are currently in the process of preparing, so we cannot give more information," Bolt representatives told Ziarul Financiar daily.
Bolt has already started negotiating with local restaurants and has even signed some contracts, according to the daily. "Bolt Food will enter
the market with the lowest fees so far, of 22%. However, these commissions can be subject
to negotiations," a market insider told Ziarul Financiar.