Uber Eats leaving Hong Kong at the end of 2021
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Food delivery giant Uber Eats revealed on Tuesday it would wind down its Hong Kong operations by year’s end after seeing slower-than-expected growth.
“Uber Eats has unfortunately not grown as expected in Hong Kong,” the company said in response to a Post inquiry. “This decision has been made independent of the global pandemic, and is in line with our broader strategy on Uber Eats.”
One of the city’s three main food delivery platforms – along with Deliveroo and Foodpanda – Uber Eats launched in Hong Kong in October 2016 and has seen a sharp rise in orders throughout the coronavirus pandemic over the past two years.
“After five years of partnering with restaurants and delivery people in Hong Kong, we have made the difficult decision to discontinue Uber Eats in Hong Kong on December 31, 2021,” the company said earlier in the day.
Uber Eats said its priority was now to support its employees, restaurant partners, delivery people, and customers as it moved towards shutting down, but added it was “more committed than ever” to growing its ride-hailing services in the city.
“We will keep investing and serve more riders and drivers in coming years by bringing the very best technology to Hong Kong,” the company, which operates in a legal grey area in the city, said.
The spokesman said the company would continue providing support to customers and partners until the end of January.
Uber Eats employs 5,000 delivery workers, some of whom signed up after losing their jobs amid the pandemic, and its service covers 16 of the city’s 18 districts.
“Uber Eats employs 5,000 delivery workers, some of whom signed up after losing their jobs amid the pandemic, and its service covers 16 of the city’s 18 districts.”
In July, Uber Eats launched a campaign in support of the small and medium-sized restaurants that use its platform, snagging celebrity endorsements from singers Alfred Hui and Joyce Cheng.
In recent months, with almost no local transmission of the coronavirus, Hong Kong’s restaurant industry, along with other businesses such as hotels, have seen signs of recovery, and bookings are healthy for the year-end holiday season.
Although social-distancing restrictions limiting the number of people permitted at venues such as bars and restaurants remain in place, about a third of the city’s 16,000 restaurants can now seat up to six per table, as long as diners have received at least one dose of a vaccine and use the government’s “Leave Home Safe” risk-exposure app.
The latest data from SevenRooms, a booking platform used at more than 350 of Hong Kong’s high-end restaurants, showed people were dining out and spending more this year when compared with two years ago, before the pandemic hit.
Earlier this month, Foodpanda couriers, upset with a cut to their delivery fees and other issues, went on strike for two days.
The strike ended after the company agreed to make changes to its mobile app and fee calculation system as well as look into other demands
Questions & Answers
Q.Why is Uber Eats leaving Hong Kong?
Why is Uber Eats leaving Hong Kong?
Uber Eats stated it is winding down operations because it has not grown as expected in Hong Kong. The decision is part of its broader strategy and was made independent of the global pandemic.
Q.How many delivery workers will be affected by this closure?
How many delivery workers will be affected by this closure?
The closure will affect 5,000 delivery workers employed by Uber Eats in Hong Kong. Some of these workers joined the platform after losing their previous jobs during the pandemic.
Q.When will Uber Eats cease operations in Hong Kong?
When will Uber Eats cease operations in Hong Kong?
Uber Eats will discontinue its services in Hong Kong on December 31, 2021. The company has committed to providing support to customers and partners until the end of January.
Q.Will Uber continue to operate any services in Hong Kong?
Will Uber continue to operate any services in Hong Kong?
Yes, Uber is committed to growing its ride-hailing services in Hong Kong. The company plans to continue investing and serving more riders and drivers in the coming years.
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