‘Uber in talks with Swiggy to offload India food-delivery business’
BANGALORE: Less than two years after Uber Technologies Inc entered India’s food-delivery business, it’s in talks to sell its Uber Eats operations in the country to rival Swiggy, said a source.
The talks between Uber and Bundl Technologies Pvt, which owns the Swiggy brand, are progressing and a deal could be sealed within the coming weeks, the source added.
Swiggy spokesman said the company doesn’t comment on “market rumours or speculation”, while Uber didn’t respond to email and WhatsApp messages seeking comment on Sunday.
Uber started its food-delivery business in India in 2017 with much fanfare and a huge marketing budget.
The United States company has poured resources into the operations to woo users with bargain food deals delivered to the doorstep but it’s pitted against competitors with powerful investors.
Swiggy raised US$1 billion in funding in December from investors including South Africa’s Naspers Ltd and China’s Tencent Holdings Ltd.
Uber Eats operates in more than 37 Indian cities, the company said last year.
Swiggy, founded in 2014, delivers from about 60,000 restaurants in at least 80 cities, while the other leading player, Zomato, transports orders from 80,000 restaurants in 150 Indian cities.
Uber’s pullback from food delivery in India follows retreats from its ride-hailing business in China, Russia and, most recently, Southeast Asia, as it prepares for a listing later this year.
Negotiations with Swiggy were first reported by the Economic Times newspaper.