FILE PHOTO: An Uber Eats, food delivery, courier service with a bike in the city centre of Kiev, Ukraine on the 9th of September 2019. REUTERS/Valentyn Ogirenko
(Reuters) – Uber (UBER.(N) has sold its-online-food-ordering-business-in-India, to a local rival to Zomato, in return for a 9.99% stake in the startup, backed by China’s Ant Financial to reduce the exposure in a crowded market where it has struggled to grow.
The all-stock deal is likely to push the Zomato for the top position in the indian food delivery market with a competitive advantage by Swiggy, that’s China’s Tencent Holdings (0700.HK) as a shareholder.
Zomato – valued at about $3 billion, and after collecting the money from the Alibaba (BABA).(N) affiliate Ant this month, saying Uber is Eating into India will have to stop operations and direct the restaurants, the delivery partners and the users of Zomato’s platform on Tuesday.
“India remains a very important market for Uber, and we will continue to invest in the growth of our local Rides, it’s business,” said Dara Khosrowshahi, Uber’s chief executive officer (ceo).
Uber is Eating into India accounted for 3% of the total amount of bookings globally, yet more than one-quarter of adjusted EBITDA loss to be in the first three quarters of the year is 2019, and the USA to ride from enterprise said.
Uber Eats, which is also pulled out of South Korea earlier this year, has said it will continue to work with Bangladesh and Sri Lanka.
While this is the first major acquisition in India’s online food delivery market, deal activity is heating up around the world.
Earlier this month, a Dutch company Takeaway.com (TKWY.AND pipped investment company Prosus is to buy one of Britain’s Just Eat YOU.(L) to 6.2 billion pounds ($8.1 billion). In December, Germany’s Delivery Hero DHER.DE agreed to buy South Korea’s top food delivery app owner in Woowa Brothers for $4 million.
Reporting by Rama Venkat in Bengaluru; Writing by Sayantani Ghosh; Editing by Stephen Coates Cushing and Christopher