Uber Eats appears to be facing many challenges as it tries to break into international markets such as Italy and Israel, according to Reuters. While immensely popular in the United States and Brazil, the company has struggled to expand its presence in other countries.
The food delivery market in Europe is booming, predicted to reach a market value of over US$95 billion by 2022. However, the Uber Eats has struggled to capture a significant share of this market due to strong local competition.
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Recently, Uber Eats decided to close its operations in Italy and Israel due to its small market share. The company intends to focus on places where it can have sustainable growth. Although it is a leader in some European countries such as France and Germany, it still lags behind its competitors in the UK and Spain.
Conquering the delivery market
This isn't the first time Uber Eats has struggled to expand into new markets. The company sold its operations in China and India in recent years. While it pioneered the concept of on-demand food delivery, Uber Eats is learning to cut its losses sooner rather than later.
While the company seeks growth in quality expansion for its consumers and users, it still hasn't managed to make the expected profit. While shareholders are willing to trade profits for short-term growth, subject matter experts believe that business sustainability is a long-term concern.
Uber Eats faces the challenge of competing with established local competitors in international markets. Despite success in some European countries, it still has a long way to go to catch up with industry leaders.
The company is learning to make strategic decisions to reduce its losses and focus on areas with greater growth potential. However, the viability of the business as a whole is still a big question mark.