The return is due to a different economic context, shaped by deregulation policies and reforms
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The delivery app Uber Eats confirmed its return to Argentina, thus marking its comeback to the local market after more than five years since its exit.
The decision comes in a different economic and political context, shaped by the deregulation policies and reform driven by the government of Javier Milei, and it opens a new stage of competition within the sector of digital food delivery platforms.
The company will resume operations in the country with the goal of positioning itself once again against the already consolidated players in the market. In addition, it seeks to differentiate itself by becoming the only app that combines mobility and delivery services on the same platform, a strategy that aims to expand its reach and competitiveness.
Uber Eats' return comes after a prolonged period of absence. The company had left Argentina in 2020, within the framework of a restructuring that led the firm to concentrate its operations in those markets where it had greater leadership.
Uber Eats.
The current scenario, however, presents substantial differences compared with that context. The Argentine delivery market is more developed and mature, with consolidated consumption habits and greater penetration of the service in different regions of the country.
This is compounded by expectations of a new regulatory framework, at a time when Milei's government is moving forward with a labor reform aimed at providing greater flexibility, with benefits for employers and workers, and simpler rules for hiring. In parallel, deregulation of the sector is part of an official strategy intended to encourage foreign investment and strengthen competition in the market.
Uber Eats in Argentina
Uber Eats had arrived in Argentina for the first time at the end of 2018, in a context of strong regional expansion. It began its operations in the province of Mendoza and then moved into Córdoba, the City of Buenos Aires, and Greater Buenos Aires. During that initial stage, the company managed to add thousands of affiliated restaurants and deployed an intensive promotions policy to gain market share.
Javier Milei y Federico Sturzenegger.
However, the competitive landscape and a market that was still in development limited its growth. The dominant presence of other platforms, such as PedidosYa and Rappi, made its consolidation difficult. Finally, in October 2020, in the midst of the pandemic, the company announced that it would discontinue its delivery service both in Argentina and in Colombia.
Since that exit, the local market hasn't stopped expanding. Ordering food for home delivery has become a structural habit, the gastronomic offering has diversified, and the platforms have expanded their presence both in major urban centers and in the interior of the country, strengthening their territorial capillarity.
For delivery companies, the government's labor reform is a determining factor. The historical absence of a specific framework was one of the main risk factors for the sector, both because of litigation and because of potential labor costs.
