Uber is ending its Uber Eats restaurant delivery service in Brazil March 7 to focus on store delivery service Uber Direct and deliveries by online groceries platform Cornershop, according to a Reuters report Thursday (Jan. 6) that cites sources close to the matter.
Uber’s decision is part of its worldwide effort to close unprofitable operations around the world. Uber’s statement doesn’t include a reason for shuttering its Uber Eats service in Brazil.
Rappi and iFood are among the other food delivery services in Brazil. The former counts SoftBank Group among its investors while the latter is part of Movile, a technology group backed by Prosus.
Related: Brazil’s Movile Bets on Logistics, Payments and the Metaverse to Sustain Growth Streak
The Global Digital Shopping Index: Brazil Edition, a PYMNTS and Cybersource collaboration, shows that 41% of Brazilian consumers are very or extremely likely to use digital-first features to make purchases, higher than the levels in other major international markets PYMNTS studied.
Movile CEO Patrick Hruby told PYMNTS CEO Karen Webster that FinTech is considered “the launchpad” for products and services that can be thought of as part of an interoperable digital payments ecosystem — and he sees it as a natural extension of Movile’s role as venture capital backer and incubator.
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Also Read: Uber to Test Driverless Food Delivery in 2022 in California
Last month, Uber teamed up with autonomous driving venture Motional — a collaboration between Hyundai and Aptiv — on a driverless food-delivery pilot in the U.S. this year, starting in Santa Monica, Calif., through the Uber Eats app.
Uber sold its self-driving car division to Aurora Innovation Inc. last year, extinguishing its vision to make autonomous taxis. Motional is also planning to work with Lyft on self-driving taxis in Las Vegas, with a target of debuting the service in 2023.
Uber is also working with CLEAR by integrating its “Home to Gate” free in-app feature with Uber’s software to help users figure out exactly when to leave for the airport and help them reserve an Uber ride ahead of time, helping make everything “seamless” and “predictable.”
