Uber Could Be Set to Sell Stake in India’s Zomato

Uber is most likely the seller of a 7.8% stake in Indian food delivery platform Zomato set to go up for sale Wednesday (Aug. 3).

According to a Tuesday (Aug. 2) report from Reuters, a term sheet shows that the offer size of 612 million shares is worth $373 million. Sources told Reuters the seller in question is Uber, although the term sheet does not identify the seller.

Read more: Zomato Buying Grocery Delivery Startup Blinkit for $568M

Last month, news broke that Zomato was purchasing local grocery delivery startup Blinkit for 44.47 billion rupees ($568.2 million) in an all-stock deal as part of its strategy to expand its capabilities in the space amid stiffening competition. Studies show India’s quick commerce sector was worth $300 million in 2021 and is expected to expand to $5 billion by 2025, the report said, citing research firm RedSeer.

Zomato purchased nearly 10% of Blinkit last summer for $66.2 million and said earlier this year it was aiming to invest up to $400 million in the Indian quick commerce sector over the next two years. Their purchase of Blinkit exceeded that amount by at least $100 million.

Uber on Tuesday released earnings that show the company’s gross bookings were up 33% year over year. The company’s filing reveals that its delivery segment saw a 12% growth in gross bookings — to the tune of $13.9 billion — which led to a 43% gain in its revenues from that unit, to $2.7 billion, as measured in constant currency.

See also: MENA Food Delivery Service Bucks Global Downward Trend

PYMNTS reported recently that the food delivery sector is struggling in many parts of the world, with the Middle East and North Africa (MENA) seeming to be an outlier, as local and international delivery players in that region seem to be ramping things up.

For example, Deliveroo launched its grocery delivery service, Deliveroo Hop, in the United Arab Emirates (U.A.E.), where the service is available in five cities.

And Uber’s Middle Eastern subsidiary Careem has strengthened its presence in MENA markets. In June, the firm purchased Dubai-based Munch:On, enhancing its food delivery capacity in the country in an attempt to get an edge over competitors.