Uber is in advanced stages of talks to sell its food delivery service UberEats’ India business to local rival Zomato, as the American ride-hailing giant looks to cut its spending, three people familiar with the matter told TechCrunch.
The deal values UberEats’ India business at around $400 million, one of the sources said. As part of the deal, Uber would get a sizable stake in Zomato, and may further invest between $150 to $200 million in the 11-year-old Indian firm, people said.
A spokesperson for Uber declined to comment on Saturday. A text to Zomato founder and chief executive Deepinder Goyal, who met Uber executives last week, remained unanswered.
The deal comes at a time when Zomato is in final stages to close a new financing round of $600 million, Goyal told news agency PTI earlier this month. TechCrunch reported earlier that China’s Ant Financial was close to leading a financing round of up to $600 million in the 11-year-old firm.
The terms of the deal are still being negotiated, and the deal could finalize before the end of the year, people said. Indian newspaper Times of India first reported about Zomato and Uber’s talks last month.
If the deal goes through, it would mark the end of a year-long struggle for the U.S. giant that has had conversations with both Zomato and Prosus Ventures-backed Swiggy to offload UberEats’ India business.
More to follow…