Uber today said it has sold its food delivery business in India to local rival Zomato in an all-share deal worth a reported $350m (£268m).
The deal gives Uber a 10 per cent stake in Zomato, which is backed by Ant Financial, a fintech affiliate of Chinese conglomerate Alibaba.
The companies did not disclose the value of the deal but it is thought to be worth roughly $350m, local media reported, citing sources.
Zomato said the deal made it the “undisputed” market leader in the Indian food delivery business — putting it ahead of rival Swiggy.
“Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication,” said Uber chief executive Dara Khosrowshahi.
“India remains an exceptionally important market to Uber and we will continue to invest in growing our local rides business, which is already the clear category leader.”
The takeover is the latest example of consolidation in the highly competitive global food delivery market.
Earlier this month Dutch firm Takeaway.com snapped up UK rival Just Eat for £5.9bn following a fierce bidding war with tech investment firm Prosus. In December, German operator Delivery Hero acquired South Korea’s top delivery app owner Woowa Brothers for $4bn.
Deepinder Goyal, Zomato founder and chief executive, said: “We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category.”