Why Uber sells its Uber Eats India Business To Zomato?

Why Uber sells its Uber Eats India Business To Zomato?

Uber eats entered in India in 2017 for online food delivery business and started things by giving good services. But after some time Uber was making a loss with Uber eats operations that's why they have initiated a discussion to sell Uber eats to Indian players in late 2018. Uber sold its food business Uber eats to Zomato, Uber would own 9.99% of Zomato.

According to CEO Dara Khosrowshahi,

"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Ride business, which is already a clear category leader. We have been very impressed by Zomato's ability to grow rapidly in a capital-efficient manner and we wish them continued success".

Uber will continue its ride-hailing business in India. Some of the employees of Uber eats will join Uber and some will go to some other places. As per the experience of customers, Uber eats operations were very good and they will miss it.