Uber just sold its food delivery business in India to local rival Zomato

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Ride-hailing giant Uber said Tuesday it sold its food delivery business in India to its competitor Zomato in an all-stock transaction. 

The sale gives Uber a 9.99% stake in the Indian restaurant aggregator and food delivery start-up. 

As a result, Uber Eats will discontinue operations and direct restaurants, delivery partners and users to the Zomato app starting today. 

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” CEO Dara Khosrowshahi said in a statement. 

The tech giant is under pressure from investors to turn its business around. Last year, the company reported a $5.2 billion loss in its second-quarter earnings and laid off hundreds of employees in 2019. 

Previously, Uber also sold its China and Southeast Asia businesses to local players Didi Chuxing and Grab, respectively. 

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