Proactive Investors - Uber Technologies Inc (NYSE:UBER) announced on Thursday that it will cease operations in Israel, where the company has not built sufficient market share, Reuters reported.
A company spokesperson stated that the action is “in line with our efforts to focus on markets where we have opportunities for sustainable growth.”
Uber CEO Dara Khosrowshahi had previously said Uber will invest only in markets where it can be the largest or second largest player.
In Israel, Uber is #3 in the country’s taxi and private hire market, behind Taxi and Yango.
Uber launched its services in Israel in July 2022 by connecting to a nationwide network of licensed taxis.
A previous attempt by Uber to operate in Israel was halted by a court in 2017, after Israel’s Transportation Ministry, Taxi Driver Union and a rival ride-hailing company had won an injunction after complaining that Uber used drivers who lacked the proper business licenses and insurance.
The ride-hailing platform also revealed on Thursday that it will shut its food delivery business in Italy, where it trails Just Eat and Glovo.
Uber added that it will continue to expand its mobility service in that country, where it works with dispatcher IT taxi.