Uber sold its food delivery service in India to local rival Zomato, hoping to reduce losses amid stiff competition from the South Asian market.
Uber now owns 9.99% of Zomato, while users of Uber Eats apps and delivery partners will be redirected to the Zomato platform, the companies announced on Tuesday.
Local media, citing sources, say the deal is valued at $ 300 million to $ 350 million. The San Francisco-based company launched its food delivery service in India in 2017, but has been suffering losses in strong competition with Zomato and its rival Swiggy.
Founded as a start-up in 2008, Zomato currently operates in more than 500 cities in India and serves more than 70 million customers per month.
"This acquisition significantly strengthens our position in the [food delivery] category," said Zomato founder and CEO Deepinder Goyal, tweeting the purchase slogan: "Together is better."
"India remains an exceptionally important market for Uber and we will continue to invest in the growth of our local tour business, which is already the clear category leader," said Uber CEO Dara Khosrowshahi.
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