Uber Eats quit eight markets in 2020, betting only on where it was first or second

On May 4, 2020, TechCrunch reported that Uber Eats was pulling out of the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine — shutting each by June 4, 2020 — and transferring its UAE business to Careem, its wholly owned Middle East ride-hailing subsidiary. 'These decisions were made as part of the Company's ongoing strategy to be in first or second position in all Eats markets by leaning into investment in some countries while exiting others,' the regulatory filing read. Uber said the moves were not pandemic-related but part of its 'strategy of record'.

The retreat formalized what the market knew: earlier in 2020 Uber had pulled Eats out of India, selling to local leader Zomato — where Zomato and Swiggy held the top two slots — for a 9.99% stake. The seven discontinued markets plus the UAE transfer represented just 1% of Eats' gross bookings but 4% of its adjusted EBITDA losses in Q1 2020, savings Uber pledged to reinvest in 'priority markets where we expect a better return on investment'. The pack was thinning all around: Glovo announced its own exits that year, and Deliveroo confirmed major layoffs the week before.

A source familiar with Uber said the changes would let it focus on new business lines such as grocery delivery — a nationwide Carrefour tie-up in France had been announced the previous month, plus grocery partnerships in Spain and Brazil. Asked which markets counted as priorities, and whether it had sought buyers for the shuttered units, Uber declined to answer.

The exited markets were 1% of Eats gross bookings and 4% of its adjusted EBITDA losses in Q1 2020

Eats had chased global scale without local wins; in exited markets like India it sat behind entrenched leaders such as Zomato and Swiggy.

On-demand delivery unit economics only stack up at large market share, so third-place markets burned cash with no route to profitability.

The first-or-second-place rule turned a sprawling footprint into triage: fund the markets you can win, exit the rest.

Subsidizing a market you cannot win is just slower exit: subscale delivery burns cash with no path to first or second place.

Operations in the seven markets ended by June 4, 2020, with UAE users transitioned to Careem's platform in the following weeks; Uber Eats rides operations were unaffected. The savings were redirected to priority markets and new categories like grocery delivery.