San Francisco’s Uber to phase out Brazil restaurant delivery business



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San Francisco’s Uber to phase out Brazil restaurant delivery business

On Thursday, Uber Technologies, the San Francisco, California-headquartered American multinational ride-sharing industry trailblazer, had issued a statement saying that the closely monitored Silicon Valley’s scintillating start-up would wrap up its Uber Eats operation in Brazil from March 7, illustrating a likely strap line of defeat amid intensifying competition from home-grown food delivery start-ups.

Apart from that, Uber was quoted saying in the statement that the ride-sharing industry mogul would peter out its food delivery business in Brazil in a bid to focus on deliveries of its online grocery service providers such as Cornershop alongside Uber Direct that happens to be a delivery service for stores.

On top of that, latest move from Uber comes over the heels of a fiercely competitive food delivery industry in the largest Latam economy, while a number of start-ups like of Japanese tech investment conglomerate SoftBank-backed Rappi alongside Prosus-backed iFood among others had been wrangling over a larger bite of share amid an utterly saturated market backdrop.

Both Rappi alongside Prosus-backed iFood owner Movile, were reportedly considering a public market floatation in a near term, while the food delivery start-ups had raised millions of dollars in fresh capital inflows last year for financing their LATAM operations.

Uber Eats to quit Brazil operation

Aside from that, a local newspaper Brazil Journal, had quoted sources familiar with the issue as saying that the latest move from Uber Technologies had been a part of a global-scale overhaul, while the Californian ride-sharing industry behemoth had been looking to shut in unprofitable operations all over the globe.

However, Uber did not disclose any reasons behind its latest decision to wind down Uber Eats’ operation in Brazil.