Uber sells India food business to local rival Zomato to cut losses

Uber Technologies Inc. has agreed to sell Uber Eats in India to local rival Zomato, underscoring the U.S. ride-hailing giant’s effort to cut back on loss-making operations globally.

Uber will offload the business in return for 9.99% of the Indian startup, maintaining a foothold in one of the world’s fastest-growing internet arenas, the companies said in a statement. As part of the deal, the U.S. company will shutter operations but direct all restaurants, delivery companies and diners to Zomato. Neither company offered up financial details but the Economic Times reported that Zomato — which CB Insights last valued at $2.2 billion — paid its American counterpart about $350 million.

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