Uber announced on Thursday that it will be closing its food delivery operations in Italy and exiting the Israeli market due to its lack of significant market share in these countries.
The decision aligns with Uber’s strategy to concentrate on markets where it has the potential for sustainable growth, as stated by a company spokesperson.
CEO Dara Khosrowshahi has previously emphasized that Uber will only invest in markets where it can establish itself as the largest or second largest player.
In the Italian food delivery sector, Uber lags behind Just Eat and Glovo, while in the Israeli taxi and private hire market, it trails behind Gett Taxi and Yango.
As Uber’s delivery service relies on self-employed contractors, the company disclosed that around 50 employees, as well as thousands of non-employee couriers and restaurants, will be impacted by the decision in Italy.
However, Uber plans to continue expanding its mobility service in Italy, where it collaborates with dispatcher IT taxi.
Uber’s primary markets in Europe include Britain, France, Spain, and Germany, where it has a strong presence.
The company has observed significant adoption of its platform by taxi drivers in Europe, who utilize the Uber app to complement their traditional curbside ride-hailing business.