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May 2020 www.intellinews.com I Page 9
Uber Eats exits all but core CEE markets
The express food delivery service Uber Eats
is pulling out of all but its core markets in Central and Eastern Europe (CEE), the company announced this week.
“We have made the decision 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 in a press release.
Uber Eats will close its Romanian operation on June 3, the company said on May 4.
“While we are sad that Uber Eats is leaving Romania, we are committed to continue serving our communities here through our Uber Rides business. Our number one priority now is to minimise the impact on the valued employees, restaurant partners, delivery partners and consumers who have supported us,” the company said in a press release, as cited by Start-up.ro.
Uber Eats was officially launched in Romania
in mid-May 2018 and is available in three cities: Bucharest, Timisoara and Iasi. The company said that its decision to scale back its ambitions is not a response to the current coronavirus (COVID-19) crisis but a realignment to improve profitability. The company will only stay in markets where it is already number one or two in terms of market share, or can see a “clear path to becoming number one or two.”
Express food delivery has got a fillip from the regionwide lockdowns as populations across the
region are forced to stay at home. However, the crisis also means average incomes will almost certainly fall and unemployment rise as the entire region is facing the possibility of recession in the coming year or longer.
Uber Eats has not made any changes to doing business in Poland and will continue to develop the platform in this market, the Uber press office said in an email to Bizblog.pl.
The Polish branch of the company emphasised that "Uber Eats has expanded its operations
to other cities such as Olsztyn, Czestochowa, Chorzow and Ruda Slaska only recently,” and intends to continue to grow its Polish business.
"In the coming months, the company will continue its expansion and invest in co-operation with restaurants and delivery partners throughout
the country, so that more and more users of applications in Poland will be able to order their favourite dishes and discover new flavours thanks to the Uber Eats platform," the company said.
The Polish express food delivery market is particularly vibrant, with a number of companies competing for the same customers, including Pyszne.pl, PizzaPortal, Glovo, Wolt and Bolt Food.
By June 4 Uber Eats will also leave Ukraine, which is still in the midst of an expanding coronavirus epidemic and has the lowest income levels in the region, bar Moldova.