Uber sells loss-making online food ordering business in India to Zomato

Uber Technologies Inc has sold its loss-making online food-ordering business in India, Uber Eats, to Zomato in exchange for a 9.99 per cent stake in the Indian food ordering platform.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective Tuesday, the two companies said in statements.

Neither company gave financial details.

Started in 2017, Uber's food-delivery business in India has lagged market leaders Nasper-based Swiggy and Jack Ma's Ant Financial-backed Zomato. Another player Foodpanda, which was acquired in 2017 by ANI Technologies Ltd that also owns ride-hailing app Ola, too struggled to consolidate its user base.

"We have acquired Uber Eats India and with this development, we are the undisputed market leaders in the food delivery category in India," Zomato founder Deepinder Goyal wrote in a blog. "Through this deal, Uber Eats India users now become Zomato users."
Goyal, who is also the CEO of Zomato, said: "We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category."
"We have been very impressed by Zomato's ability to grow rapidly in a capital-efficient manner," he said. "Our Uber Eats team in India has achieved an incredible amount over the last two years."