Swiggy in discussions to acquire Uber's India food delivery business

Currently, UberEats' India business is doing 150,000 to 250,000 deliveries a day with a gross sales run-rate of $200-250 million.
  • Franchise India Team Editor
Restaurant India

Bengaluru-based Swiggy is in talks to acquire Uber Eats India, the food-delivery arm of global ride-hailing firm Uber. The transaction is expected to be a share-swap deal, with Uber taking shares in the buyers for the agreed-upon valuation. 

A source familiar with the development said, "Swiggy is currently leading the discussions but Zomato is in contention as well."

Currently, UberEats' India business is doing 150,000 to 250,000 deliveries a day with a gross sales run-rate of $200-250 million. However, both Ola and Zomato do four-five times more deliveries than UberEats.

This acquisition is seen as a strategy for Uber to reduce losses on a global level as it prepares for a possible public offering. Uber posted a loss of $1.8 billion for 2018.

In December, Swiggy had raised $1 billion in one of the biggest single financing round in the Indian food-tech industry.

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