Ride-sharing platform, Uber has sold its food delivery business Uber Eats in India to local player Zomato Media.
Having launched in the country in 2017, Uber has spent heavily on discounts to compete with local rivals like Swiggy and Zomato, which was founded in 2008, according to The Wall Street Journal.
Uber Eats in India generated 3% of the company’s gross food-delivery bookings worldwide over the first three quarters of 2019 and accounted for more than 25% of Uber Eats’ global adjusted losses.
According to Statista, Zomato received 650,000 daily orders in India in 2018, second behind Swiggy, which received 800,000 orders on a daily basis. Uber Eats came in third with 150,000 orders per day.
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The platform will continue its core business of ride-sharing in India, where it competes with ANI Technologies Inc.’s Ola.
“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business,” said Dara Khosrowshahi, the chief executive of Uber.
Uber discontinued food-delivery operations in South Korea in September 2019 and in Singapore, it sold its South East Asia business to Grab in 2018.
Yetunde Adegoke
