Forced to pay for accident and Covid-related contamination insurance, Uber shuts down restaurant delivery service.
The announcement comes a day after the signing of a bill requiring app companies to purchase insurance for their delivery drivers.
Reuters Uber announced on Thursday that it has decided to end operations of its Uber Eats restaurant food delivery service in Brazil by March 7, citing a "change in strategy" to focus solely on grocery and other store deliveries, as well as packages.
The announcement came a day after President Jair Bolsonaro signed into law a bill requiring app-based companies to provide their delivery drivers with accident insurance during working hours. The company did not mention the bill's approval in its statement regarding the decision to shut down its restaurant delivery service.
"Uber will change its delivery strategy in Brazil, disabling its restaurant food delivery intermediary service...The food delivery intermediary service will remain available until March 7th," the company said in a statement.
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