HONG KONG - Uber Technologies has agreed to sell Uber Eats in India to local rival Zomato, underscoring the US ride-hailing giant's effort to cut back on loss-making operations globally.
The deal marks yet another leg in a wave of consolidation sweeping the food delivery sector. Uber, which is trading well below its IPO price, seeks to hive off loss-making operations to achieve its goal of being profitable on an Ebitda basis by 2021. While it will continue to vie with Ola - also backed by SoftBank Group - in ride-hailing, exiting the food business can help staunch bleeding in one of the most competitive markets in the region.
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