business news in context, analysis with attitude

The New York Times reports that Uber has sold off its food delivery business in India, saying that it was a matter of gettin rid of money-losing businesses, responding to investors who want to see a profit out of the company.

The buyer is Zomato, a local startup and competitor in the food delivery space, which in turn is giving Uber a just under 10 percent stake in the company.

According to the story, "All delivery drivers for the service, known as Uber Eats, and basic information about customers, including their phone numbers and order history, will be transferred to Zomato, the companies said. In addition, Uber’s app will send Indian users to Zomato for six months when they click on the 'Get Food Delivery' button."

Not that it may matter much. The Times writes that "Uber Eats never managed to attract many restaurants or customers in India, despite the company’s ride-hailing business. There was little synergy between the two businesses, since food delivery in India is done by motorcycle couriers, while rides are provided mostly by cars."
KC's View:
We're going to see a lot of this in the short term, I'd guess, as we get closer to a recession and companies look to get their balance sheets in order before things get tougher. That's certainly what I'd do.