…The bet will put even more pressure on Uber, whose public-market debut last week was dented in part because of concerns that its once-meteoric growth rate was slowing down. (Other food-delivery businesses took a hit as well: Shares in Just Eat were down more than 8 percent in trading in London on Friday, at 622 pence.)
Privately, Uber has identified growing competition to UberEats as one of the reasons its growth has declined, The New York Times reportedthis week. Cash injections in rivals like DoorDash in the United States and Rappi in Latin America have forced Uber to spend more on UberEats to shore up its market position, denting its growth.
Uber announced this year that it would cut its food-delivery fees in Britain and Ireland, in response to competition from Deliveroo and Just Eat.