Uber has announced on Thursday that it will rethink its delivery strategy in Brazil, shutting down its food delivery service.
From now on, the company will work with two services: Cornershop by Uber, for grocery delivery services from grocery stores, wholesalers, and other specialty stores; and package delivery through Uber Flash.
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The food delivery service will be available until March 7. After that, Brazilian customers will be able to use the Uber Eats app to buy only from grocery stores and wholesalers, as well as home décor items, stationery items, beverages, and pet products through Cornershop by Uber.
Uber also said that Cornershop is available in more than 100 Brazilian cities and, by 2021, has nearly tripled the number of orders. The company added that it will expand Uber Direct, a corporate product that allows stores to make same-day deliveries to their customers.
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“This modality has grown about 15 times in the number of trips over the past 12 months, driven by demand from major brands that have joined the service,” Uber said.
In Brazil, Uber faces tough competition from iFood, the country’s delivery behemoth, and Rappi, both of them major restaurant delivery services in Latin America. Uber emphasized that ride-hailing services will continue as normal and that the volume of rides in Brazil is already higher than it was in the period before the pandemic.
