Uber Eats decides to leave Brazil in the midst of fierce competition in the delivery market

RIO DE JANEIRO, BRAZIL – Uber announced Thursday that its restaurant delivery firm, Uber Eats, will leave Brazil amid difficulties competing with iFood, which owns more than two-thirds of the market.

“From now on, the company will work on two fronts: with Cornershop by Uber, for intermediation services for delivery of purchases from supermarkets, wholesalers and specialty stores; and package delivery by Uber Flash,” the company said in a statement.

It will also, it added, expand Uber Direct, which allows stores to make same-day deliveries for their customers. “This modality grew by nearly 15 times in trip numbers over the last 12 months, driven by demand from large brands that contracted the service.”

According to Brazil’s O Globo newspaper, the company’s last delivery will be on March 7.

This decision further reduces competition in a market dominated by the Brazilian online platform, which operates mainly in its home country and Mexico and has been accused by its rivals of monopolistic practices.

In late 2020, Colombian firm Rappi requested an investigation against iFood before the Administrative Council for Economic Defense (Cade), which prohibited the delivery app from demanding exclusivity in new contracts with restaurants.

Without Uber Eats, the local company is practically alone in the segment, as Rappi is far from having a geographic presence beyond the central regions of the main cities.