Uber ride with Indian food delivery firm Zomato comes to an end

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Uber ride with Zomato completed. The taxi company sold a 7.8% stake in the loss-making Indian food delivery company on Wednesday for more than $390 million, the latest major institutional investor to divest its shares, according to a person familiar with the matter.

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The US firm, which posted a net loss of $2.6 billion for the second quarter, said on Tuesday that it assumed an unrealized loss of $707 million on its investment in Zomato. in the first half of this year and the quarter ended June 30, 2022.

Uber sold its food delivery business in India to local competitor Zomato for $206 million after years of aggressive attempts to compete with local food giants Zomato and Swiggy. As part of the deal, Uber acquired a 9.99% stake in a money-losing Indian food delivery startup. Uber did not respond to a request for comment.
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Zomato shares have been underperforming this year. fell to a record low last week after the end of the blocking period for investors who held stakes in the company prior to the initial public offering.

The shares closed at INR 55.55 (72 cents) a share on Tuesday, giving the company a market capitalization of $5.5 billion. below an estimate of $13.2 billion. it happened on his debut day a year ago. On Tuesday, Zomato said it aims to break even on EBIDTA by the fourth quarter of next year and lowered its investment in Blinkit’s fast commerce from $400 million to $320 million.

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Credit: techcrunch.com /

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