Uber Ceases Food Delivery in Italy and Ride-Hailing in Israel

The company will no longer operate in countries where it cannot build adequate market share.

June 20, 2023

Uber will no longer operate its food delivery service in Italy and its ride-hailing service in Israel due to Uber’s inability to build sufficient market share, reports Reuters.

The moves were "in line with our efforts to focus on markets where we have opportunities for sustainable growth," a company spokesperson told Reuters.

In the past, Uber CEO Dara Khosrowshahi has said that Uber will only invest in markets where it can be  the largest or second largest player. In Italy, Just Eat (Grubhub’s parent company) and Glovo had more market share, and Uber fell behind Gett Taxi and Yango in Israel.

Earlier this year, Zomato, an Indian restaurant aggregator and food-delivery company, ceased operations in the Philippines, and last November, Deliveroo, a U.K.-based food delivery app, stopped doing business in Australia because of poor economic conditions. The company said it did not hold a “broad base of strong local positions” within the Australian food delivery market, which was “highly competitive, with four global players.”

In November, Voly, an Australian grocery delivery company, announced its closure after stopping deliveries and deleting its social media accounts. The company promised delivery in 15 minutes or less and employed its own workers instead of using the gig economy. Voly had raised $18 million in seed funding a year ago, which was one of Australia’s largest ever seed rounds. The company launched in July 2021.