MUMBAI, India — Uber, in its latest move to drop money-losing businesses, agreed on Tuesday to sell its food delivery business in India to Zomato, a local competitor, in exchange for 9.99 percent of the Indian start-up.
All delivery drivers for the service, known as Uber Eats, and basic information about customers, including their phone numbers and order history, will be transferred to Zomato, the companies said. In addition, Uber’s app will send Indian users to Zomato for six months when they click on the “Get Food Delivery” button.
Uber has faced increased pressure from investors to turn a profit, and it spent much of 2019 cutting costs and laying off employees after a disappointing initial public offering last May. While its food delivery service, Uber Eats, has grown quickly, it faces aggressive competition around the world, and the company has been forced to spend heavily on subsidies and promotional offers to gain new users.
FULL STORY: NY TIMES