Uber has sold its Indian food delivery business to local competitor Zomato in an all-stock transaction.
As part of the deal, Uber would own a 9.99 per cent stake in Zomato and its Eats users would become part of the Indian company.
Zomato is backed by Alibaba affiliate Ant Financial, which recently agreed to invest up to $150 million at a pre-money valuation of $3 billion.
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Based on that valuation, the deal valued Uber’s stake in Zomato around $300 million (£230m, €270m). Uber has not yet commented on the deal’s value.
Uber Eats launched in India in 2017 and is set to discontinue operations immediately. It will direct restaurants, delivery partners and users to the Zomato app.
Uber Eats employees in India have been given the option to join Uber while the rest will be let go.
In its first-half report for fiscal 2020, Zomato’s revenue came in at $205 million, increasing from $63 million in the same period a year ago.
Asia has become the largest market for online food delivery globally, topping $45 billion in revenue in 2018. It is predicted to surpass $100 billion by 2025.
Uber will continue competing in the Indian ride-hailing market against start-up Ola.