Daily News

View All News

Uber sells India Uber Eats business to competitor for 10% stake

January 21, 2020

Uber Technologies Inc. (NYSE: UBER) announced today that it completed the sale of its Uber Eats food delivery business in India to local competitor Zomato Media Private Ltd. The deal includes a roughly 9.99% stake in Zomato for Uber and approximately $35 million in cash for reimbursement of Zomato of goods and services tax, according to a filing with the US Securities and Exchange Commission.

The sale of Uber Eats in India follows the sale Uber Eats in South Korea last October and highlights the company’s efforts to review Uber Eats markets where it is not in a market leadership position, Uber CFO Nelson Chai said.

“At least some of the investment that we would have otherwise made in India will now be redeployed to other countries we serve where we believe we have a clear path to No. 1 or No. 2,” Chai said.

Uber Eats revenue in India was approximately $20 million in the third quarter, according to Uber.

Uber CEO Dara Khosrowshahi said Uber will still offer rides in India.

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” Khosrowshahi said.