Uber sells Uber Eats India to Zomato in exchange for 9.99% stake in Zomato

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.

Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

Tags: , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: