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Uber is in talks to sell its Uber Eats division in India to local rival Zomato, three informed sources told The Wall Street Journal. Aggressive expansion and high discounts cost Uber dearly, and selling the business could allow the company to avoid $ 500 million in annual losses.
Both companies said they did not comment on rumors. The Indian division of Uber Eats is estimated at $ 400 million, said one of the sources of TechCrunch. Under the agreement, Uber can also invest from $ 150 million to $ 200 million in Zomato and get a significant share in the Indian company, the source said.
The deal may be announced as early as this week, WSJ interlocutors said. As part of the deal, Uber Eats' Indian business was valued at approximately $ 400 million, one TechCrunch source said.
According to The Wall Street Journal, since the launch of Uber Eats in India in 2017, the company has spent significant funds on discounts to compete with Indian companies, including Zomato, which has been operating in India since 2008. The company has been financed by Ant Financial Services Group (subsidiary of Chinese Alibaba).
Uber CEO Dara Khosrowshahi is trying to improve the financial position of the loss-making company, writes WSJ. In November 2019, he announced that the company planned to cut costs and achieve profit in 2021. At that time, Uber reported a loss of about $ 1.2 billion for the third quarter.
The company's revenue amounted to $ 3.8 billion (+ 30% year-on-year). The quarterly revenue of Uber Eats food delivery service grew by 64% to $ 645 million, the Uber Freight service for ordering freight transportation increased by 78% to $ 218 million, and other services (electric scooters, electric bicycles and others) brought the company $ 38 million in revenue. The main business brought Uber $ 2.89 billion (+ 19%).
source: wsj.com
Both companies said they did not comment on rumors. The Indian division of Uber Eats is estimated at $ 400 million, said one of the sources of TechCrunch. Under the agreement, Uber can also invest from $ 150 million to $ 200 million in Zomato and get a significant share in the Indian company, the source said.
The deal may be announced as early as this week, WSJ interlocutors said. As part of the deal, Uber Eats' Indian business was valued at approximately $ 400 million, one TechCrunch source said.
According to The Wall Street Journal, since the launch of Uber Eats in India in 2017, the company has spent significant funds on discounts to compete with Indian companies, including Zomato, which has been operating in India since 2008. The company has been financed by Ant Financial Services Group (subsidiary of Chinese Alibaba).
Uber CEO Dara Khosrowshahi is trying to improve the financial position of the loss-making company, writes WSJ. In November 2019, he announced that the company planned to cut costs and achieve profit in 2021. At that time, Uber reported a loss of about $ 1.2 billion for the third quarter.
The company's revenue amounted to $ 3.8 billion (+ 30% year-on-year). The quarterly revenue of Uber Eats food delivery service grew by 64% to $ 645 million, the Uber Freight service for ordering freight transportation increased by 78% to $ 218 million, and other services (electric scooters, electric bicycles and others) brought the company $ 38 million in revenue. The main business brought Uber $ 2.89 billion (+ 19%).
source: wsj.com
