Postmates Food Delivery Leaving Mexico for U.S. Market

Competition is tough south of the border.

December 05, 2019

MEXICO CITY, Mexico—Postmates, the San Francisco-based online food delivery service, is closing its operations in Mexico to focus on the U.S. market, reports CNBC.

The company began offering meal delivery in Mexico City in late 2017, but the service failed to achieve the same success as it did in the United States. Currently, Postmates service is available in more than 4,200 cities, covering 80% of U.S. households, according to the company’s website.

“This wasn’t an easy decision for us as we’ve already dedicated two years to establishing ourselves and growing this market,” the company said in a statement. “Looking toward the future, we believe focusing on our sustained growth in major U.S. markets is what we should do.”

In Mexico, the food delivery business is dominated by the U.S. giant Uber Eats, Colombia’s Rappi and Spain’s SinDelantal. China’s DiDi recently launched its competing service in Mexico as well.