New Delhi: Uber, a popular ride-sharing mobile application company, would soon be selling its door to door food delivery business UberEats to Zomato. While Zomato has become a big name in the providers of food delivery from various restaurants across an area depending upon the client wish, UberEats too had been in the same business for quite a long time. Now it is being reported that Uber is in advance stages of talk for selling its food delivery service UberEats' India business to local rival Zomato. The deal would currently value at around $400 million to UberEats' India.
The deal is being done as the American ride-hailing giant wants to cut its spending globally. According to the sources, Uber may invest $150 to $200 million in Zomato and get a sizable stake in the 11-year-old Indian firm. Both the companies are still negotiating the terms and conditions but the deal is supposed to be finalised before the year ends.
It is worth mentioning that these talks came out at the time when Zomato is in final stage to choose a new financing round of $600 million. The business reports doing the rounds in the market have stated that China's Ant Financial was to a leading funding round of up to $600 million in Zomato at a valuation of $3 billion. It the talks go well between UberEats and Zomato and the deal goes through, it would mark the end of a year-long struggle for the US giant to offload its eatery services in India. The US based company had been in conversations with both Zomato and Swiggy to offload UberEats' India Business.
The US giant launched its food delivery UberEats service in India in mid-2017 but could not go through the hearts of its customers, while Zomato and Swiggy became one of the favourite sites to be surfed by the people of the country. Even as the ride-hailing giant offered major discounts to win customers, it could never pose a real threat to Zomato and Swiggy and now has to close its food delivery services in India to cut global spending.
Zomato and Swiggy process more than 1 million orders each day while in comparison, daily volume of orders UberEats packs is just 6,00,000 a day. Recent quarters of the US giant saw two key executives leave the firm. UberEats' India and Southeast Asia head Bhavik Rathod and head of central operations for UberEats in India Deepak Reddy said goodbye to the firm in recent months that too led a downfall in the business.
Recently, Uber Chief Executive Dara Khosrowshahi had acknowledged that the firm is facing tough competition in the country but had suggested that the company would continue to operate in the food delivery space. The process, however, seem to end soon.