Uber has agreed to sell its food delivery business in India to rival Zomato in an all-stock deal that gives Uber a 9.99% stake in the combined business.
Why it matters: Uber is under growing pressure from investors to figure out a path to profitability and cut loose anything that won't help it reach that goal.
- Uber has shed other units in the past couple of years such as its Southeast Asian business, and made its self-driving car unit into a separate subsidiary which took in outside capital last year.
- Some outlets report that Uber Eats India accounted for just 3% of the company's global food delivery gross bookings ad at least 25% of its adjusted operating loss.
Flashback: In 2018, Uber considered acquiring Swiggy, another big rival in India, though the talks never turned into a deal.
