BENGALURU (Reuters) – Uber (UBER.N) has sold its loss-making online food-ordering business in India to local rival Zomato in exchange for a 9.99% stake in the startup backed by China’s Ant Financial.
FILE PHOTO: An Uber Eats food delivery courier walks with a bicycle in central Kiev, Ukraine September 9, 2019. REUTERS/Valentyn Ogirenko
Since launching in India in 2017, Uber Eats has struggled to gain market share and is a distant third to Tencent Holdings (0700.HK) backed Swiggy and Zomato. All three have spent heavily on deals and discounts to attract customers in a highly competitive market.
The deal will allow San Francisco-based Uber to cut its losses and yet keep a stake in a market expected to be worth $15 billion by 2023.
“For Uber, the deal means redefining competence,” independent brand consultant Harish Bijoor said. “It should stick to what its competence is, in terms of being an aggregator of cabs.”
Uber Eats’ India operations contributed just 3% of gross…
Source Reuters Tech News