Summary
Uber Technologies, Inc. has announced the divestiture of its India food delivery business, Uber Eats India, to Zomato Media Private Limited. This strategic move, effective January 21, 2020, involves Uber receiving approximately 9.99% of Zomato's total voting capital in the form of compulsorily convertible preference shares, along with $35 million in cash for Goods and Services Tax reimbursement. This follows Uber's earlier exit from Uber Eats South Korea and signals a focused strategy on markets where Uber can achieve a leadership position. This divestiture is a key step in Uber's ongoing efforts to streamline its operations and reallocate resources towards markets with clearer paths to profitability and market dominance. Investors should note that financial details for Uber Eats India are provided as supplemental information, and pro forma financial statements reflecting this transaction are also included. The company anticipates redeploying capital previously earmarked for India to other growth regions, aiming for #1 or #2 market positions globally.
Key Highlights
- 1Uber divests its Indian food delivery business (Uber Eats India) to Zomato Media Private Limited.
- 2Transaction consideration includes 9.99% equity stake in Zomato (convertible preference shares) and $35 million in cash.
- 3Divestiture aligns with Uber's strategy to exit markets where it lacks a clear path to leadership.
- 4Proceeds and resources will be redeployed to other markets where Uber aims for #1 or #2 positions.
- 5Supplemental financial information for Uber Eats India and pro forma financial statements are included in the filing.
- 6This follows a similar strategic exit from Uber Eats South Korea in October 2019.