Uber Sells Food Delivery Business in India To Local Rival Zomato

An anonymous reader quotes a report: Uber said on late Tuesday that it has sold its food delivery business, Uber Eats, in India to local rival Zomato as the American ride-hailing giant races to shed lossmaking operations to become profitable by next year. As part of the deal, Uber would own 9.99% of Zomato and its Eats users would become part of the Indian company, the two loss-making firms said. The deal valued Uber Eats' India business between $160 million and $200 million, two people familiar with the matter told TechCrunch. TechCrunch reported last month that the two were in advanced stages of talks for a deal. Indian newspaper Times of India first signaled about the two companies' talks in November. Satish Meena, an analyst at Forrester, told TechCrunch that despite the Uber deal, Zomato still lags local rival Swiggy, which services more number of orders each day. Backed by Prosus Ventures, Swiggy raised $1 billion in late 2018.

$200 million valuation?

[110010001000]

Uber probably loses $10,000,000,000 a year. So good luck with that.

Re:$200 million valuation?

[Nidi62]

Uber probably loses $10,000,000,000 a year. So good luck with that.

Sure, but they make up for it in volume.

Re: $200 million valuation?

[MrNaz]

Nothing says "road to profitability" like merging two loss making tech firms with zero ability to control their margins.

Re:

[cusco]

So "loss-making" is the new phrase for "bottomless money pit"?

Does this mean....

[cayenne8]

...that the new "Uber Eats" will only now deliver Indian food?

;)

Profitability

[fluffernutter]

They're going to make the company profitable.... So they're going to charge the same as a taxi and still pay the driver $3 an hour?

Zomato sells your personal details

[junglee_iitk]

If you ever register for zomato, prepare to get spam. I understand trying to be profitable but this was just one example of underhanded tricks zomato has pulled over the years.

They suit well with uber.

What happened to the zomato driver who pilfered ..

[140Mandak262Jamuna]

A zomato driver was caught eating the food he was supposed to deliver [bbc.com] Became a viral video and Zomato sacked him. Normal thing in any place.

But there was so much of sympathy for the sacked driver. Many Indians took the stand, he should not have been sacked. Many in India believe hunger drives people to do things they would not otherwise do. For example in Tamil there is a list of ten things that will be lost when hungry: self esteem, temper, law obedience, altruism, empathy, sympathy etc. We in the West h

Re: What happened to the zomato driver who pilfere

[MrNaz]

That's too empathetic and thoughtful a comment for these parts.

Re:

[140Mandak262Jamuna]

Sorry for mangled editing:

It should read:

Such sentiments would be very strange to America. Here Corporations are people, but Corporation-people will not go hungry like flesh-and-blood-people. Corporation-people are allowed, nay, be legally required, to be selfish. But the society expects flesh-and-blood people to be altruistic.

Restaurants wont play ball

[fermion]

Much of the gig economy depends on the workers to eat costs and hopefully find efficiencies so they can still make money. Given the cost of running a car, it is hard to see how aerífera can see significant profit when they make as little as Uber gives then as a share. Amazon pulled out of restaurant delivery in my area, presumably because they had no control of the restaurant and could not make money. In my area Uber is giving heavy discounts to build the restaurant delivery business. I don’t see