UberEats Will Leave India Soon
India has given Uber cash diarrhea
Update: As of January 20th, 2020, UberEats has left India. The business was sold to Zomato in an all-stock deal.
Like a hostage situation, Dara Khosrowshahi is rapidly blinking in earnings calls, signaling that he’ll pull Eats out of India soon. If you want to say HELP ME in investor-speak, here’s how:
“We’re going to shoot to get to number one and number two in every market that we’re in. If we [can’t] make it to that level, we’ll look to dispose, or will get out of the market.”
and later:
Right now in India, we’re the #3
You read between the lines.
UberEats won third place in India after Foodpanda drowned themselves in a flood of Rs. 9 milkshakes. UberEats can discount and die or stay still and die, but they’re going to die. The discounting and operational moat around the Swiggy/Zomato duopoly is just too strong to resist. To that end, Uber has already discussed selling the Eats business to Swiggy, Zomato, Amazon and now Zomato again.
