Uber is reportedly facing a stiff competition with other food delivery platforms in Italy. Credit: Jonathan Weiss via Shutterstock.com.

Ride-hailing company Uber plans to stop its food delivery services in Italy and exit the Israeli taxi market, Reuters reported.

Uber relies on self-employed contractors for its delivery service in Italy and the move is expected to impact 50 Uber employees and thousands of non-employee couriers and restaurants in the region.

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In a statement, an Uber spokesperson said: “The decision was in line with the company’s efforts to focus on markets where we have opportunities for sustainable growth.”

Uber reportedly faces stiff competition in Italy with other food delivery platforms such as Just Eat and Glovo.

The company intends to expand its mobility service network, which works with dispatcher IT taxi.

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According to the news agency, the company also intends to exit the Israeli market, as it is believed to have not captured any significant market share in the region.

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In the Israeli taxi and private hire market, Uber reportedly faces competition from its business rivals, including Gett Taxi and Yango.

Uber CEO Dara Khosrowshahi added that the company would only invest in those markets where it can be the largest or second leading player.

The UK, France, Spain and Germany are said to be Uber’s biggest markets in Europe. Its app has seen strong adoption by taxi drivers to enhance their curb-side ride-hailing business.

In January 2023, Uber decided to stop its restaurant delivery service Uber Eats in Brazil.