Uber Eats sells Indian business to Zomato as competition, losses mount



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Uber Eats sells Indian business to Zomato as competition, losses mount

Uber Eats, the San Francisco, CA-based online food delivery company, had sold its money-draining Indian business to the world’s fifth-largest economy’s homegrown online food aggregator and food delivery start-up, Zomato, headquartered on Gurugram, Haryana.

In point of fact, US-based multinational online food delivery service provider had been facing off fierce competition from both Zomato and Swiggy since it launched its Indian business back in the May of 2019. Nonetheless, under the terms of the deal which went effective on Tuesday, the 21st of January 2020, Uber Eats had been taken over by the Haryana-based Indian food delivery start-up Zomato for a 9.99 per cent stake in the start-up, backed by the Chinese investment behemoth Ant Financial, Uber Eats said in a statement earlier on Tuesday (January 21st).

Behind the scenes, all three top online food delivery services in India, Zomato, Swiggy and Uber Eats had spent millions of dollars on promos and on deals alongside discount aimed at grabbing customers, but amid stiffer regulation in the India for foreign investments which included up to 50 per cent in taxations in some cases alongside a growing protectionism, the San Francisco-based online food delivery company seemed to be forced to sell its Indian operations off to Zomato, the 12-year-old online food delivery start-up with a current market valuation of $3 billion.