Uber Eats sells India food business to Zomato

Food delivery and aggregator platform Zomato early Tuesday morning announced that it has acquired Uber’s food delivery business in India, Uber Eats in an all-stock transaction, which gives Uber 9.99% ownership in Zomato.

This essentially means that Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats app will be migrated to the Zomato platform, effective Tuesday.

Both companies have thus, far declined to give any numbers on the deal.

Uber Eats, which was launched in 2017 competed in India alongside Zomato and Softbank backed Unicorn Swiggy. Analysts suggest that exiting the food business would help the ride-hailing platform free up resources to compete with Softbank backed Ola in the competitive ride-hailing market.