Uber pauses food delivery expansion in Europe
What's the story
Uber has put a halt to its planned food delivery expansion in Europe, according to Financial Times. The company had initially planned to enter seven new markets this year: Austria, Denmark, Finland, Norway, Czech Republic, Greece, and Romania. However, it has now scrapped plans for five of those countries, including Austria, Norway, and Greece.
Strategic shift
Uber to continue operations in Denmark and Finland
Uber said it would continue operating in Finland and Denmark, where the launches have been a "huge success." The company plans to focus on these existing markets for now. This strategic shift comes as Uber continues its pursuit of Delivery Hero, a German food delivery company. Earlier this year, Delivery Hero confirmed an offer from Uber at €33 per share ($37.74).
Increased investment
Uber's stake in Delivery Hero rises to nearly 37%
Along with the acquisition bid, Uber has also increased its stake in Delivery Hero. The company now owns nearly 37% of the German food delivery giant, up from 25%. This was possible after buying a portion from Aspex Management, another shareholder. Despite these developments, neither Delivery Hero nor Uber has commented on the Financial Times report about the halted expansion plans.