The ride-hailing company on Tuesday agreed to sell its food delivery business in India to local rival Zomato. It is just the latest exit for Uber (UBER).
The all stock deal with Zomato gives Uber a 9.99% stake in the Indian startup. Zomato — which counts Alibaba (BABA) affiliate Ant Financial as one of its major investors — was last valued at $2.2 billion, according to CB Insights.
The acquisition of Uber Eats “significantly strengthens our position” in India’s food delivery wars, Zomato founder and CEO Deepinder Goyal said in the statement.
Uber reported a loss of more than $1 billion in the third quarter of 2019.