Uber Sells Meal Delivery Service In India To Competitor
Mohammad Ali (@ChaudhryMAli88) Published January 21, 2020 | 12:24 PM
Ride-share giant Uber has sold its meal delivery business in India to Zomato, one of its local competitors, as it steps up efforts to achieve profitability
New York, (UrduPoint / Pakistan Point News - 21st Jan, 2020 ):Ride-share giant Uber has sold its meal delivery business in India to Zomato, one of its local competitors, as it steps up efforts to achieve profitability.
India is one of Uber's biggest markets for rides, but its UberEats meal delivery service has struggled to keep up with the two largest online food-delivery players Zomato and Swiggy.
In exchange for the network of restaurants, delivery drivers and customers that UberEats has developed in India since 2017, Uber will receive 9.99 percent of Zomato's capital, according to a press release issued Monday evening.
The statement did not specify the value of the Indian start-up.
UberEats users will be redirected to Zomato starting Tuesday.
"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader," said Uber CEO Dara Khosrowshahi in the press release.
Uber, whose share price has tumbled since its public offering in May, is due to release its annual results on February 6.
The group, which promised investors profitability by the end of 2021, has already cut expenses and shed more than 1,000 employees in 2019.
Its Uber Eats service is growing fast but faces intense competition in many countries.
Zomato's CEO Deepinder Goyal said in the statement that "this acquisition significantly strengthens our position in this category."The app, which offers restaurant reviews and trial offers in addition to meal deliveries, boasts more than 70 million users per month.
Related Topics
Recent Stories
Govt committed to developing gems, jewellery sector: Minister
Three new bills introduced in Senate
Nine dead, 1,318 injured in Punjab road accidents
Ukraine, Russia exchange fire, at least seven dead
1st-ever National Sports Revival conference starts next month
Joint venture decided for action against MEPCO’s defaulters
Modern irrigation system imperative to deal with water scarcity: UAF VC
Bringing 4.4mln hectares suitable land under olive cultivation to address econom ..
One woman died after speedy bus overturned
155 killed in Tanzania as heavy rains lash East Africa
Parliament committed to resolve public issues on priority basis: Ghulam Mustafa
Collaborative Care of Diabetes Centre inaugurated in Faisalabad
More Stories From Business
-
Collaborative Care of Diabetes Centre inaugurated in Faisalabad
20 minutes ago -
Kazakh envoy stresses quantum jump in bilateral trade
13 minutes ago -
Thousands of flights scrapped as French air traffic controllers strike
18 minutes ago -
SECP proposes amendments to General Takaful Accounting Regulations, 2019
18 minutes ago -
Govt committed to developing gems, jewelry sector: Minister
28 minutes ago -
Pakistan earns $1,976 million from IT services' export in 8 months
2 hours ago
-
Turkey central bank holds key interest rate steady
11 minutes ago -
PSX loses 80 points
2 hours ago -
Ahad Cheem lauds UNDP’s cooperation
2 hours ago -
Rupee sheds 09 paisa against dollar
11 minutes ago -
Chinese tech behemoth enters game amid global EV surging trend
11 minutes ago -
London stocks hit new record on blockbuster mining takeover bid
2 hours ago