The Financial Times reported on Sunday that Uber has halted its plans to expand its food delivery services into most new European markets. The decision comes as the company continues its efforts to acquire the German firm Delivery Hero.
According to the report, Uber no longer intends to launch its food delivery services in five out of seven targeted markets by the end of this year. Austria, Norway, and Greece are among the countries where the rollout has been suspended, while the names of the remaining two countries have not yet been disclosed.
Uber had previously announced plans to expand its food delivery operations to seven new European markets this year, including Austria, Denmark, Finland, Norway, the Czech Republic, Greece, and Romania. The company had projected that the expansion would add approximately $1 billion in gross bookings over the next three years.
The Financial Times also reported that Uber continues to pursue the acquisition of Delivery Hero. The German company stated in May that it had received a buyout offer from Uber valued at €33 per share.
Reuters had earlier reported that Uber increased its stake in Delivery Hero from 25% to approximately 37% after acquiring part of the shares held by investment firm Spex Management.
Delivery Hero declined to comment on the matter, while Uber did not respond to Reuters’ request for comment.
Uber told the Financial Times that, following the “significant success” of launching food delivery services in Finland and Denmark, it has decided to pause its expansion into new markets and instead focus on strengthening its operations in existing ones.
Writer:Salima Aryaei
