Uber announced that its Uber Eats restaurant delivery service in Brazil will end on the 7th of March, 2022. This decision was done in a context of fierce competition between food delivery companies in Brazil, where providers such as the Colombian Rappi and iFood are getting stronger in the region.
Although Uber did not disclose the reasons behind this move, it is most probably part of a global repositioning strategy where Uber is closing unprofitable operations. The reason behind Uber Eats’ low profits may be the high fees they charge restaurants for the service, forcing them to search for other alternatives.
Also, last June the company acquired Cornershop, a Chilean wholesale and grocery delivery app, so this decision makes place for Cornershop’s expansion in Brazil. Uber will also expand Uber Flash, which focuses on package delivery. In the same press release, the company announced it would develop the presence of Uber Direct, a product that allows stores to make same-day deliveries to their clients. Uber stated that the ending of Uber Eats’ services in Brazil does not interfere with its passenger transportation and ride-sharing services.