RIO DE JANEIRO, BRAZIL – Uber Eats delivery app will stop making restaurant deliveries from Tuesday, March 8. The company explains that the app will continue to operate, but only for supermarket items and package deliveries.
The announcement was made in January, and in a statement sent to users, the company confirmed the shutdown of the restaurant delivery function. According to Uber, the Eats function will be available until 11:59 PM this Monday, March 7.
“From now on, the company will work on two fronts: with Cornershop by Uber, for grocery delivery intermediation services from supermarkets, wholesalers, and specialty stores; and package delivery by Uber Flash,” the company said.
The app also said it plans to expand on Uber Direct, a corporate option that allows stores to make same-day deliveries to their customers, and transportation modes, such as motorcycles and cabs, to deliver their products.
The Brazilian Association of Bars and Restaurants (Abrasel) said that the end of Uber Eats in Brazil leaves the sector with “a lot of apprehension”.
For Paulo Solmucci, president of Abrasel, the discontinuation of the service represents a significant loss of competitiveness in the delivery market.
In October 2019, Uber bought a majority stake in Chilean startup Cornershop and integrated supermarket orders into Uber Eats.
In Brazil, the app delivery market is dominated by iFood, with more than 70% share.
Last March, the Administrative Council for Economic Defense (Cade) prohibited the company from making new exclusivity contracts with restaurants after a joint complaint from Uber Eats and Rappi.