After selling its share in Zomato, Uber has officially departed India’s online food delivery sector.
When Uber Technologies sold its Uber Eats company to Zomato, India’s largest food delivery service, it acquired the 9.99 percent ownership in 2020.
Zomato’s share price fell 0.2 percent after Uber sold its interest in a block sale this week.
In recent years, the Indian market’s internet meal delivery business has been immensely appealing to investors; however, the lustre has gone as the reality of the loss-making operations has been disclosed. Since the firm went public last year, Zomato has recorded quarterly losses.
Despite the losses, the firm has recorded constant gains in orders as customers embrace the meal delivery sector, which is predicted to treble over the next three years, with Zomato holding almost a 50% market share.
Uber’s ride-hailing service continues to operate in India’s competitive market, where it fights for market share with local rival Ola.