Uber Eats to cease operations in the UAE

Uber Eats to cease operations in the UAE

Uber Eats will cease operations in the UAE as it will transfer its operations to Careem, its parent company Uber Technologies said in a statement posted on the Securities and Exchange Commission website.

"Consumers and restaurants using the Uber Eats app in the UAE will be transitioned to the Careem platform in the coming weeks, after which the Uber Eats app will no longer be available," it said in a statement.

In addition, the company announced it would fully discontinue Uber Eats operations in the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine by June 4, 2020. Uber Rides operations are not affected.

These decisions were made as part of Uber's ongoing strategy to be in first or second position in all Eats markets by leaning into investment in some countries while exiting others.

Last month, ride-hailing firm Uber laid off 20 per cent of its workforce - more than 5,400 of 27,000 employees - as rides come to an indefinite halt in most countries owing to lockdowns and social distancing in place, The Information reported.

Layoffs of that magnitude "could be announced in stages in the coming weeks" at Uber, said the report, as long-serving Uber's Chief Technology Officer (CTO) Thuan Pham quit the company.

As a result of impact of Covid-19, Careem has also announced cutting 536 jobs across its business as a result of the impact of the Covid-19 pandemic.

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