From the position of the initiator, Uber now has to gradually sell off businesses to cut losses

Uber Technologies has agreed to sell Uber Eats in India to a local competitor, Zomato. This is said to be the company’s latest attempt to reduce the loss.

Specifically, Uber will sell the Uber Eats business in exchange for a 9.9% stake in Indian startups – maintaining a foothold in one of the fastest growing internet markets in the world. Zomato – valued at US $ 2.2 billion has confirmed the deal but declined details.

The deal marks a new “exit” in the food delivery business. Uber is currently seeking to cut losses to achieve its profit-before-tax, interest and depreciation targets by 2021. With still competing with Ola in the ride-hailing field in India, the move to exit the delivery market Food will help Uber avoid the endless burning of money in one of the world’s most competitive markets.

Uber started its food delivery business in India in 2017 with a lot of excitement and a huge budget. The San Francisco-based company has not been afraid to spend a lot of money on activities to attract users with attractive promotions, but they are still lagging behind a few competitors. There are rich investors.

Swiggy and Zomato “backed” by Ant Financial are currently leading the food delivery sector in India – the market is showing strong consolidation. Meanwhile, ANI Techonologies, the Ola ride-hailing app, bought Foodpanda from India in December 2017 and also faced difficulties in competing with the other two competitors.

“Competition in this area is continuing to be hotter than ever and the food delivery segment is still very small compared to the overall food service market in India. Through this agreement, Uber Eats user India “I want to make sure that the Uber Eats user experience will not be affected and that at the new scale we will be able to deliver goods faster,” the founder of Zomato said.