It’s reported that Uber, the ride hailing company, is in deep discussions with an Indian company to auction off its food delivery arm in the Indian subcontinent. Inside sources say the sale is becoming urgent as the Indian food-slinging arm of the company continues to hemorrhage cash. If all goes as planned, Uber will sell its Uber Eats India to a native food delivery service named Zomato. While everything about the pending sale is very hush-hush, anonymous sources inside the company say that the sale could be completed by as early as the end of this week.
Uber Eats India is valued at around $400 million.
The chief executive of Uber, Dara Khosrowshahi, is attempting to cut back on money-draining parts of the company to show investors that it is still a very profitable proposition. Many investors have been complaining, both in public meetings and behind closed doors, that Uber needs to reconfigure its balance sheet since going public six months ago.
Their initial public offering this past spring was not a howling success, as investors began queuing up to ask about why the company was not on a solid footing yet when it came to profit margins. The whisper on Wall Street today is that Uber is underfunded and overextended, and needs severe pruning to get back on top of the game.
