Uber has scrapped plans to launch food delivery in five European countries — FT
Uber has decided to suspend most of its planned expansion into new food delivery markets in Europe, abandoning the ambitious plans it had announced just a few months ago.
The company is halting the launch of its service in five of the seven countries that were previously considered priorities for business development this year.
Specifically, the countries where Uber is canceling its expansion include Austria, Norway, and Greece, while the names of the other two countries remain confidential.
The company had previously planned to enter seven European markets: Austria, Denmark, Finland, Norway, the Czech Republic, Greece, and Romania.
The strategic goal of these moves was to generate an additional $1 billion in gross order volume over the next three years.
However, Uber’s management has shifted its priorities, opting to consolidate its assets rather than expand into new markets.
Now, the San Francisco-based company is focusing on strengthening its market presence through the acquisition of the German service Delivery Hero.
In May, Delivery Hero officially confirmed that it had received an offer from Uber at 33 euros per share, marking the beginning of a new financial strategy.
Uber has already increased its stake in the German company from 25% to nearly 37% by buying shares from Aspex Management.
This move signals a shift in business model: instead of building its own infrastructure from scratch, Uber is investing in existing market players.
This was reported by the Financial Times.
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