Uber, in order to cut its global expenses, is advancing talks to sell its food delivery arm UberEats India to local rival Zomato, TechCrunch reported.
According the report on Monday citing sources, the deal “currently values UberEats’ India business at around $400 million”.
As part of the deal, “Uber may invest between $150 to $200 million in Zomato”, the report claimed, citing sources.
As an event in Delhi earlier this month, Zomato Founder and CEO Deepinder Goyal said the company was aiming to raise up to $600 million in a new funding round.
The saying “big fish eat small ones” comes true to UberEats India as it is a distant third in the Indian food delivery mark after Zomato and Swiggy, sources said.
The former gets every day food delivery up to 2.5 to 3 lakhs. The latter two get 20 to 25 lakhs. UberEats has projected a loss of Rs 1,451 crore for 2020 in India, according to filing with registrar of companies.
UberEats, the India market has been a drag on global margins and the company said that it will focus on markets where it can be first or second player. It has already shut its South Korea UberEats in September, The Tiimes of India reported.
Despite arriving in the Indian market in 2017, UberEats has not made enough inroads in online food delivery segment.