Ride hailing giant Uber is preparing a major expansion of its food delivery business across Europe signaling intensified competition in the multibillion euro market.
According to a report by the Financial Times the U.S. based company plans to roll out delivery services in seven new European countries this year. New markets will include the Czech Republic Greece and Romania with further expansion into Austria Denmark Finland and Norway.
Uber expects the move to generate an additional one billion dollars in gross bookings over the next three years a significant boost as tech platforms battle for dominance in the fast growing online food delivery sector.
Susan Anderson Uber’s global head of delivery told the newspaper the company aims to “raise the bar shake things up and deliver better value” across the category suggesting aggressive pricing stronger logistics and deeper restaurant partnerships could be part of the strategy.
The expansion comes at a time when competition across Europe is intensifying with established local players and international platforms fighting for market share amid rising operating costs and tighter consumer spending.
Earlier this week Uber also agreed to acquire the delivery arm of Turkish rapid delivery firm Getir in a deal involving its Emirati controlled shareholder Mubadala. The acquisition is expected to strengthen Uber’s footprint in Turkey and consolidate its regional position.
Uber has not yet officially commented on the expansion plans. But if confirmed this move would mark one of its most aggressive European growth pushes in recent years.
