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Uber Sells Indian Meal Delivery Business to Zomato

Uber Technologies Inc. has agreed to sell Uber Eats in India to local rival Zomato, the New York Times reported.
Bloomberg
By Bloomberg
21 Jan
Grubhub Spikes After Sale Chatter Spurs Call for M&A (Photo: Gabby Jones / Bloomberg)

The U.S. company will offload the business in return for 9.9% of the Indian startup, the newspaper said, citing the two companies. It will continue to operate its core ride-hailing service.

Uber, which is trading well below its IPO price, seeks to hive off loss-making operations to achieve its goal of being profitable on an EBITDA basis by 2021. Uber started its food-delivery business in India in 2017 with much fanfare and a huge marketing budget. The San Francisco-based company has poured resources into the operations to lure users with bargain food deals delivered to the doorstep but it’s pitted against competitors from Zomato to Swiggy with powerful investors.

To contact the reporter on this story:
Edwin Chan in Hong Kong at echan273@bloomberg.net

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