By Preetika Rana
Uber Technologies Inc. has agreed to sell its Indian food-delivery unit to a local rival, shedding a struggling business in a move that could steer the ride-hailing company toward profitability, according to two people familiar with the matter.
The sale also gives Uber a 9.99% stake in India's Zomato Media Pvt. Ltd., the people said, and comes as Uber Chief Executive Dara Khosrowshahi seeks a path to profitability for the San Francisco company.
Uber has discontinued food-delivery operations in a country only once before. The ride-sharing company faced stiff local competition in South Korea and in September said it would stop delivering food there.
Uber's divestment in India comes at a time of global consolidation in the highly competitive food-delivery sector.
Write to Preetika Rana at email@example.com