Service will also leave Colombia, where it faces strong competition from Rappi
The Uber Eats food delivery application will deactivate its services in Argentina within 30 days, Clarín reported Thursday (22). Uber has already communicated its employees in the country and also in Colombia, informing of the disconnection, as it had already happened in May of this year in Uruguay.
In a press release, Uber explained the reasons:
„We decided to discontinue the Uber Eats service in Argentina and Colombia. This will allow us to concentrate resources and energy in other markets Bitcoin Revolution around the world. This decision applies only to the Uber Eats service and does not affect Uber’s carpooling business. We remain fully committed to our investments in both countries, offering people a secure, affordable and reliable mobility solution“.
Argentina faces high inflation, a sharp devaluation of the Argentine peso and a rapidly growing epidemic of covid-19. However, nearby sources told Clarín that „the decision has nothing to do with Argentina or the country’s context“.
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Uber would have made the decision to focus its business where there is less competition and where Uber Eats arrived before the majority, establishing itself as one of the leaders in the sector, as happens in Brazil and Chile. The application came last in Argentina compared to its local competitors, which made its consolidation in the market difficult.
Moreover, in Colombia Rappi’s strength in the already dominant segment, which makes competition costs much higher.
The U.S. company said it was a difficult decision and sought to minimise the impact that its withdrawal from the country would have on its partner suppliers, restaurants and delivery companies by compensating them with what the company called an „economic incentive.
The delivery application has been in operation in the neighbouring country since 2018, but its shutdown will not affect Uber’s basic travel and passenger transport service.