Uber might sell off its Indian division
Uber is planning to sell its food delivery division UberEats in India. The potential buyer is its main regional competitor - Zomato.
The deal is still being discussed, but it might be closed before the end of 2019. UberEats India is currently valued at about US$400 million. As part of the agreement, Uber can also invest from US$150 million up to US$200 million in the Indian company, that could be considered a startup not too long ago.
The representatives of both companies refused to comment on whether the deal is actually underway. But it is a fact, that Zomato is currently on the rise. The company is on the verge of closing a financing round of US$600 million at a US$4 billion valuation.
UberEats started operating in India back in 2017. The company offered very attractive discounts to customers, but could not effectively compete with strongmen like Zomato and Swiggy, with their staggering numbers of over one million orders per day. Uber’s numbers rose as high as 600 000 orders per day, but it was not enough. The division was additional blows when leading executives - Deepak Reddy and Bhavik Rathod - exited the project.
Uber’s CEO Dara Khosrowshahi has admitted that UberEats is in a tight spot, but still suggested that the food delivery arm is not yet dead.