Uber’s ride with Indian food delivery firm Zomato comes to an end – TechCrunch

Uber’s ride with Zomato is over. The ride-sharing company sold its 7.8 percent stake in the loss-making Indian food supplier on Wednesday for more than $390 million, a person familiar with the matter said, becoming the latest major institutional investor to sell its stake.

The U.S. company, which reported a net loss of $2.6 billion for the second quarter

Uber sold its food delivery business in India to local rival Zomato for $206 million after years of aggressively trying to compete with local grocery giants Zomato and Swiggy. As part of the transaction, Uber acquired a 9.99% stake in the loss-making Indian grocery delivery startup. Uber did not respond to a request for comment.

Zomato’s shares have performed poorly all year, falling to an all-time low last week after the lockup period ended for investors who owned shares in the company before the IPO.

It fell as much as 9% on Wednesday morning before recovering to 52.60 Indian rupees (67 cents) a share, giving the company a market cap of 5.25 billion. Zomato said on Tuesday it aims to increase EBIDTA to break even by the fourth quarter of next year, and it has downgraded its investment in quick trade Blinkit to $320 million from $400 million.