Uber sells food delivery business in India to Zomato

Uber said on Tuesday it has sold its food delivery business, UberEats, in India to local rival Zomato as the American ride-hailing giant continues to shed lossmaking operations and become profitable by next year.

As part of the deal, Uber would own 9.99% of Zomato, the companies said. The deal valued UberEats’ India business between $300 million and $350 million, a person familiar with the matter told TechCrunch. TechCrunch reported last month that the two were in advanced stages of talks for a deal.

Satish Meena, an analyst at Forrester, told TechCrunch that despite the Uber deal, Zomato still lags Prosus Ventures-backed Swiggy, which services more number of orders each day.

More to follow…

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