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Uber Analysts Say India Food Unit Sale Ends ‘Dark Chapter’

  • Analysts say the deal bolsters Uber’s path to profitability
  • Management aims to be profitable on an Ebitda basis in 2021
Updated on

Uber Technologies Inc. rose as analysts said its decision to sell its India food delivery unit to local rival Zomato improves the outlook for the company eventually turning a profit.

The $172 million deal to offload Uber Eats in India, which struggled to gain traction in a market largely dominated by local competitors, is being interpreted as another step toward meeting Uber’s goal of becoming profitable on an Ebitda basis in 2021.