Food drink Uber Sells Food Delivery Business in India To Local Rival Zomato

An anonymous reader quotes a report: Uber said on late Tuesday that it has sold its food delivery business, Uber Eats, in India to local rival Zomato as the American ride-hailing giant races to shed lossmaking operations to become profitable by next year. As part of the deal, Uber would own 9.99% of Zomato and its Eats users would become part of the Indian company, the two loss-making firms said. The deal valued Uber Eats’ India business between $160 million and $200 million, two people familiar with the matter told TechCrunch. TechCrunch reported last month that the two were in advanced stages of talks for a deal. Indian newspaper Times of India first signaled about the two companies’ talks in November. Satish Meena, an analyst at Forrester, told TechCrunch that despite the Uber deal, Zomato still lags local rival Swiggy, which services more number of orders each day. Backed by Prosus Ventures, Swiggy raised $1 billion in late 2018.