Jan 21, 2020 - Technology

Uber sells India food delivery business to rival Zomato

Kia Kokalitcheva

Photo: CHANDAN KHANNA/AFP via Getty Images

Uber has agreed to sell its food delivery business in India to rival Zomato in an all-stock deal that gives Uber a 9.99% stake in the combined business.

Why it matters: Uber is under growing pressure from investors to figure out a path to profitability and cut loose anything that won't help it reach that goal.

Uber has shed other units in the past couple of years such as its Southeast Asian business, and made its self-driving car unit into a separate subsidiary which took in outside capital last year.
Some outlets report that Uber Eats India accounted for just 3% of the company's global food delivery gross bookings ad at least 25% of its adjusted operating loss.

Flashback: In 2018, Uber considered acquiring Swiggy, another big rival in India, though the talks never turned into a deal.

Go deeper: Uber sells Southeast Asia business to rival Grab

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Uber sells India food delivery business to rival Zomato

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