Uber, a ride-hailing multinational company, has sold its food delivery business operating in India to Zomato. The transaction was completed in all-stocks which gives Uber a 9.99 percent stake in Zomato.
Zomato is the local competitor and food delivery startup in India.
After the sale, Uber Eats will close its operations in India. Likewise, it will direct the users, delivery partners, and restaurants to the Zomato App.
The stake of Uber in Zomato is currently worth approximately $300 million.
However, Uber will continue competing in the ride-hailing market in India. At current, a start-up Ola remains as a major competitor for Uber,
.After acquiring Uber Eats, Zomato will strengthen its position in the food delivery market in India. Swiggy, the major competitor of Zomat0 is backed by Naspers and is offering huge discounts to customers.