By Staff writer
Company has announced plans to close operations in Saudi Arabia immediately
Uber Eats is to join forces with Careem’s food delivery service in the UAE.
However, the company’s operations in Saudi Arabia is one of eight countries where it will close altogether.
Uber Eats, which was launched in 2017, will make the transition to Careem, its wholly-owned subsidiary operating primarily in the Middle East.
A spokesperson told Arabian Business: “We believe Careem is better placed to serve our food delivery communities as it expands its super app across the region. Looking ahead, Uber remains committed to growing and investing in Uber’s mobility platform in UAE and the Middle East.”
The company said that despite the demand for food delivery continuing to grow at a significant pace in the UAE, “the market is complex, dynamic and highly competitive”.
The move to close down operations in Saudi Arabia with immediate effect comes after a programme of expansion in the kingdom, which included the launch of Uber Eats in several cities, such as Khobar, Dhahran, Dammam and Jeddah.
The spokesperson added: “This move will also mean that resources can be redeployed, and invested into markets where we see more growth, as EMEA continues to be a major source of growth and opportunity for Uber Eats globally.”
Uber Eats will also cease to operate in Czech Republic, Egypt, Honduras, Romania, Ukraine, and Uruguay.