Uber Eats decided to drop out of the food delivery sweepstakes in Saudi Arabia and Egypt. It noted that in UAE it would join forces with Careem’s food delivery operations.
“Looking ahead; we remain committed to growing and investing in Uber’s mobility platform in the Middle East,” an Uber Eats’ spokesperson said.
Uber Eats said it took the decision based on “a hard look at the business metrics”. This is amid a competitive market for food delivery, knowing that the food app was first launched in 2017.
Data reveals that when Uber acquired Careem; both companies were confident that this partnership can bring optimal and specialized services to the region.
The company said that despite the demand for food delivery continuing to grow at a significant pace in the UAE, “the market is complex, dynamic and highly competitive”. It affirmed that food delivery is an essential part of Careem’s application that covers all daily needs. More so, this decision would accelerate Careem’s plans to present a unified platform for transportation and delivery.
“This move will also mean that resources can be redeployed and invested into markets where we see more growth, as EMEA continues to be a major source of growth and opportunity for Uber Eats globally,” it concluded.