Uber is in talks to sell its food delivery business in India

Uber is in talks to sell its food delivery business in India for about $400 million as it tries to shed lossmaking operations and become profitable in 2021… The US ride-hailing group is trying to sell UberEats in India to local delivery app Zomato, which was founded in 2008 and is backed by Chinese payments group Ant Financial… UberEats is not profitable in India, where it faces intense competition from local competitors Zomato and Swiggy, which is backed by Naspers and Tencent. Food delivery has rapidly become popular in India and attracted billions of dollars from foreign investors. But margins are thin and companies have spent heavily on discounts to win market share. The potential deal, first signalled by the Times of India, would mark another round of industry consolidation in which Uber — the world’s largest ride-hailing group with operations in 63 countries — retrenches in exchange for a stake in a rival. In 2018 Uber sold its south-east Asian business to local rival Grab, but took a board seat and a 27.5 per cent stake in the business. In 2016 it withdrew from China, in exchange for a 19 per cent stake in Didi. A similar 2017 exit in Russia resulted in a 38 per cent stake in Yandex.Taxi. 

Patrick McGee, Stephanie Findlay and Henny Sender