Uber to close food delivery operations in Italy and exit Israel, focusing on sustainable growth
Uber announced on Thursday its decision to shut down its food delivery service in Italy and withdraw from the Israeli market due to insufficient market share. The company spokesperson stated that these moves align with their strategy of concentrating on markets that offer opportunities for sustainable growth. CEO Dara Khosrowshahi has previously emphasized that Uber will invest in markets where it can establish itself as the largest or second-largest player.
In both Italy and Israel, Uber lags behind competitors such as Just Eat and Glovo in food delivery and Gett Taxi and Yango in the taxi and private hire sectors. The company’s exit will impact approximately 50 Uber employees, as well as numerous non-employee couriers and restaurants in Italy.
Despite the discontinuation of food delivery, Uber plans to continue expanding its mobility services in Italy, particularly through collaborations with dispatcher IT taxi. The company’s key markets in Europe currently include Britain, France, Spain, and Germany.
Moreover, Uber has observed a positive reception among taxi drivers in Europe, who utilize the Uber app to supplement their traditional ride-hailing businesses.