Uber Sells Indian Food-Delivery Unit to Indian Rival Zomato Media

By Preetika Rana

Uber Technologies Inc. has agreed to sell its Indian food-delivery unit to a local rival, shedding a struggling business in a move that could steer the ride-hailing company toward profitability, according to two people familiar with the matter.

The sale also gives Uber a 9.99% stake in India's Zomato Media Pvt. Ltd., the people said, and comes as Uber Chief Executive Dara Khosrowshahi seeks a path to profitability for the San Francisco company.

Uber has discontinued food-delivery operations in a country only once before. The ride-sharing company faced stiff local competition in South Korea and in September said it would stop delivering food there.

Uber's divestment in India comes at a time of global consolidation in the highly competitive food-delivery sector.

Write to Preetika Rana at preetika.rana@wsj.com

(END) Dow Jones Newswires

January 20, 2020 20:42 ET (01:42 GMT)

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