Uber could be on its way toward an exit from India’s food delivery market, if reports coming out of the country are true. According to India’s Economic Times, citing three sources with knowledge of Uber’s potential departure, the company is in the final stages of negotiations to sell its India business to food delivery rival Swiggy.
The deal, which is expected to close by next month, would represent Uber’s first divestment of its food business globally. However, the company has already sold off its ride-hailing business in China, Russia, and Southeast Asia.
It’s likely that any deal would come in the form of a share swap, with Uber picking up around 10 per cent stake in Swiggy, which was last valued at $3.3bn.
Uber is working hard to cut down its global losses ahead of its highly-anticipated initial public offering (IPO) – one which could be one of the biggest tech listings ever with a valuation of as much as $120bn. Uber Eats alone is believed to be worth over $20bn.
According to the ET report, Uber also held talks with another food delivery rival in the shape of Zomato, though these talks fell through.