US ride hailing company Uber, may go for Initial Public Offering(IPO) for its food delivery business, Uber Eats. The new FoodTech startup has been losing money is its food delivery business operated through Uber Eats sice its entry in Indian market. As per the industry experts, Swiggy may buy the Indian business of Ubereats.
Currently, Uber Eats delivers around 1,50,000 to 2,00,000 food orders daily through its app. These numbers may seem big but its rivals Swiggy and Zomato are working on much bigger scale and delivering food to a higher customer base.
According to some financial experts, the valuation of Uber Eats may get placed upwards of $500 million considering its gross run rate of around $250 million.In terms of business size, Uber eats was at third position ahead of Foodpanda backed by the rival ride hailing company-Ola.
Indian foodTech market has a large latent potential but at the same time is very competitive cause of new startups. Uber Eats too entered market causing a big disruption by giving big discounts and cashbacks. But since entry in the Indian market it has been making average loss of $15 million – $20 million every month.
Although, its other rivals like Swiggy and Zomato are operating with much wider loss every month but are hopeful for the future as they have a control over much bigger market share. Uber have had similar experiences in other countries too, in a similar fashion it existed from the China and Russia selling its stake to other competitors.