Uber is in advanced stages of talks to close a deal to sell its food delivery service UberEats’ India business to local rival Zomato, as the American ride-hailing giant looks to cut its spending, three people familiar with the matter told TechCrunch.

The deal values UberEats’ India business at around $400 million, one of the sources said. As part of the deal, Uber would get a sizable stake in Zomato, and may further invest between $150 to $200 million in the 11-year-old Indian firm, people said.

Credits-Uber Eats

A spokesperson for Uber declined to comment on Saturday. A text to Zomato founder and chief executive Deepinder Goyal, who met Uber executives last week, remained unanswered.

The deal comes at a time when Zomato is in final stages to close a new financing round of $600 million, Goyal told news agency PTI earlier this month. TechCrunch reported earlier that China’s Ant Financial was close to leading a financing round of up to $600 million in the 11-year-old firm.

The terms of the deal are still being negotiated, and the deal could finalize before the end of the year, people said.

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