The grapevine is suggesting that UberEats in India is looking for a exit plan. If media reports are to be considered , it looks like the food delivery market has been quite a hustle for UberEats, classifed as ‘dogfight’between the three giants, Swiggy, alibaba(Zomato), FoodPanda and UberEats.
India’s Economic Times is reporting that Uber is in the final stages of a deal that would see Swiggy, the food delivery service that recently raised $1 billion and expanded to general deliveries, eat up Uber Eats in India in exchange for giving the U.S. ride-hailing firm a 10 percent share of its business. Swiggy was most recently said to be valued at $3.3 billion following that billion-dollar round, which was led by Naspers including new backers Tencent and Uber investor Coatue.
Based on that backdrop, and Uber’s upcoming IPO, it would make sense to consolidate costs and yet retain a stake in the market. Uber did exactly that through its exit deal with Grab in Southeast Asia, which saw it hand over its transport and food delivery businesses in exchange for a 27.5 percent stake in Grab .
That deal, which could be a win not a loss for Uber, its Because it has got the company out of an expensive subsidies war and gave it a stake in a growing business. It could well be a recipe that Uber repeats for India’s food delivery space.