Uber has sold its online food ordering business in India to Ant Financial-backed Zomato in exchange for a 9.99% stake in Zomato.
The deal essentially limits its exposure to the Indian market where it has struggled to grow.
The all-stock deal is likely to position Zomato in the topmost rank in India’s vibrant food delivery market, ahead of Tencent-backed Swiggy.
“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business,” said Dara Khosrowshahi, Uber’s chief executive officer.
In a statement Uber stated, while Uber Eats in India accounted for 3% of the business’ gross bookings globally, its more than a quarter of its adjusted EBITDA loss in the first three quarters of 2019.
Earlier this year, Uber Eats, which also pulled out of South Korea, stated it will continue to operate in Bangladesh and in Sri Lanka.