Background and Previous Attempts
More than five years after its initial attempt, Uber Eats is making a comeback in the Argentine market. The delivery platform is re-entering a more mature and growing market, though it faces strong competition from two major players: PedidosYa and Rappi. Uber Eats is rejoining an ecosystem where consumer habits are already established and at a scale that did not exist in 2018.
Uber’s Focus on Combining Mobility and Delivery
“As we celebrate a decade of Uber in Argentina, our focus is on integrating Uber Eats and becoming the sole platform in Argentina that combines large-scale mobility with a delivery offering,” explained Uber representatives.
Previous Operations and Market Dynamics
Uber Eats initially launched in Argentina towards the end of 2018, starting with Mendoza. Throughout 2019, it expanded to Córdoba and Buenos Aires but only reached the CABA (Autonomous City of Buenos Aires) region towards the end of that year, when the market was already dominated by more established competitors.
During its first phase, Uber Eats operated with local restaurants and independent couriers but struggled to achieve a comparable scale to the market leaders. In October 2020, Uber Eats announced its departure from Argentina, which became effective a month later. The company framed the decision as part of a global reorganization, aiming to concentrate resources in markets where it held stronger positions.
This move coincided with a turning point in the sector, as the pandemic fueled the use of delivery apps but also accelerated market consolidation. The integration of Glovo into PedidosYa further solidified a landscape dominated by a few financially robust players.
Current Market Landscape
PedidosYa and Rappi hold a dominant position in the Argentine delivery business. Both companies boast established networks of merchants, couriers, and users, loyalty programs, partnerships with major chains, and strong investment capabilities for promotions.
Meanwhile, Mercado Libre attempts to position itself with its own integrated delivery offering, leveraging its payment and logistics ecosystem.
Key Questions and Answers
- What prompted Uber Eats’ return to the Argentine market? After more than five years of absence, Uber Eats is re-entering the Argentine market due to a more mature and growing delivery sector, with an established consumer base.
- What challenges does Uber Eats face in Argentina? The market is dominated by PedidosYa and Rappi, which have strong networks, loyalty programs, partnerships with major chains, and significant promotional investment capabilities.
- What is Mercado Libre’s strategy in the Argentine delivery market? Mercado Libre aims to establish itself by integrating its own delivery offering into its existing payment and logistics ecosystem.
