Uber is discussing business with its rival Zomato, to buy Uber Eats India at $400 million (₹2,750 Crores Approx).
According to sources, Zomato is in advanced discussion with Uber to grab its local online food delivery business. As a first part of the deal, Uber is expected to invest around $150 million to $200 million in Zomato, objected seeking a sizable share in the domestic food delivery service.
However, Uber Eats India has not commented yet on the matter. Meanwhile, Zomato was quoted saying that “it does not comment on rumors or speculations.”
It is noticeable that reports of Uber likely to sell its India-based online food delivery business have gone viral for a few days. Back in July, Uber discussed with Amazon India to sell its online food delivery services to the tech giant. Reports further stated that Amazon has planned to start its own food delivery service in India and could offer the service as a part of its key membership in the nation.
But now it appears that the deal didn’t crack and Zomato has secured the position in the race.
The news was reported at a time when Uber is trying to overcome its losses. In 2018, Uber Southeast Asia-based business was sold to Grab at $6 billion. According to the deal, Uber achieved a stake of 27.5 percent in Grab with the Uber CEO Dara Khosrowshahi joins the Singapore-based organization’s board. Grab has deployed a total of 1185 employees in three separate rounds of layoffs across departments in the same year.
Now, Uber likely to sell its online food delivery services, which competes high both with Swiggy and Zomato India, in the online food delivery market of India.