UberEats which is just 2-years old, business in India is up for sale in a bid to reduce losses. Currently another leading food delivery app i.e. Swiggy is leading in the discussions.

Food delivery business is booming in India and market experts predict that income in the segment would grow at a rate of 16.7% in the coming years, this would result in the market to grow to USD 5.7 billion by the year of 2022.

The Cab Company wants to sell the UberEats business to reduce the losses in the country and currently is in discussion with Swiggy based in Bengaluru and Zomato which is based in Gurugram for the same. Swiggy recently bagged USD 1.3 billion over three funding series last year and is at present leading in discussion. The deal is expected to be of the share-swap nature, where the seller, which is Uber in this scenario would get shares same as the value of transaction.

Sources said that the UberEats India Businsess may be valued two or three times of their actual gross sales for the year, and this amount might be roughly around USD 500 million. 

Swiggy is ranked at number 1 position in the most recent edition of the RedSeer FoodTech Leadership Index (FLI). The total score of Swiggy is 96 for the last quarter of the year of 2018. The competitor Zomato stands at a score of 82 wherein UberEats is at the third place on the rankings. Industry experts have mentioned that it was losing upto 15-20 million dollars on a monthly basis in India during the late 2018. Though the sales are growing up with almost 150,000 to 250,000 deliveries every day amounting to sales of 200-250 million dollars. As compared to Swiggy and Zomato