U.S. high-tech giant Uber will end the operations of its food delivery service Uber Eats in Ukraine on June 3, the company’s press service announced on April 4.
The service hasn’t been bringing in sufficient revenue and does not have enough users in Ukraine, according to the company. Uber will continue its transportation services in Ukraine and will continue to invest in this segment.
By June 4, the company will also discontinue Uber Eats in the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia and Uruguay.
Uber Eats hasn’t managed to become the number one or even number two online food delivery service in these countries. According to the company, these eight markets represented 1% of Uber Eats’ gross bookings and 4% of its adjusted core earnings losses in the first quarter of 2020.
About 50 full-time positions will be affected by the closure, the company told the New York Times on March 4. According to Uber Eats, its main priority in Ukraine is now to minimize the impact of the closure on the company’s partners and employees.
In a press release, Ukraine’s Uber Eats segment said that the company will pay compensation to its Ukrainian couriers who have made at least one delivery in April 2020. The sum of the compensation was not disclosed. The company will also repay its partners for the branded clothes they procured for the couriers.
Uber’s food delivery service entered the Ukrainian market in February 2016 and currently operates in six cities: Kyiv, Lviv, Odesa, Kharkiv, Dnipro and Vinnytsia. The service currently works with over 1,500 restaurants in Ukraine.
