Will Uber Eats withdraw from Brazil and close unprofitable businesses globally?

by Katell Ar Gow

Uber Eats, which delivers restaurant food, has been found to be out of service in Brazil. It is reported that Uber Eats continued to be in the red despite its rapid growth and expansion, and finally became profitable at the end of 2021.

EXCLUSIVO: Uber Eats desiste de restaurantes; foco será CornerShop e entregas B2B | Brazil Journal
https://braziljournal.com/uber-eats-desiste-de-restaurantes-foco-sera-cornershop-e-entregas-b2b

Uber will stop its restaurant delivery in Brazil --Protocol — The people, power and politics of tech
https://www.protocol.com/bulletins/uber-ends-brazil-uber-eats

Uber to bow out of Brazil restaurant deliveries | Reuters
https://www.reuters.com/technology/uber-end-uber-eats-operations-brazil-report-2022-01-06/

Uber, a food delivery service, is expanding its service all over the world, but it was difficult to make it profitable even if the business grew rapidly due to the epidemic of the new coronavirus infection (COVID-19). It is said that this is because the entire industry is exposed to fierce competition. Although it succeeded in turning a profit for the first time in November 2021, it has been reported that the business situation is severe, with net loss swelling more than twice the same period of the previous year due to the failure of investment in China.

Uber's sales increased by 72%, achieved the first profitability since its establishment, and the loss expanded due to the failure of investment in China --GIGAZINE

Meanwhile, on January 7, 2022, Reuters reported that Uber Eats will stop delivering food to restaurants in Brazil after March 7. Uber has a tie-up with Cornershop , a service that 'orders and delivers supermarket products online' mainly in the United States, but after March 7th, in Brazil, delivery by Cornershop and delivery other than food ' We expect to focus on Uber Direct.

Uber hasn't announced why Brazil's Uber Eats will be shut down, but the Brazil Journal reports from sources that Uber has a global repositioning strategy to close unprofitable businesses. .. In Brazil, a delivery service called 'iFood' has an exclusive position, with iFood having a market share of 80% and Uber Eats having a market share of about 10%.