Uber Eats has announced today, November 30, that it will cease to operate in Hong Kong on December 31, 2021. The food delivery platform, which has been in the SAR since 2016, did not explain the reason behind the closure.
The company is currently one of three main food delivery services in Hong Kong and counts Deliveroo and Foodpanda among its biggest competitors. However, a study shows that Uber Eats has only 5% of the revenue market share, compared to Foodpanda’s 51% and Deliveroo’s 44%. Other reports claim that the service does not have enough couriers, which has contributed to high numbers of order cancellations.
Users with Uber Eats credits can use them until the service’s last day of operation at the end of the year, and any credits remaining after this day can be used on the Uber app. Users also have the option of requesting a full refund.
Uber stated that going forward it will focus on its taxi-hailing service in Hong Kong, which accounts for its largest market globally. In August 2021, the company acquired local start-up HKTaxi and is investing in a taxi-driving licence rebate initiative to encourage new drivers to join the taxi industry.
Header image credits: Raysonho, CC0 1.0