Uber eats is likely to end in India soon, As rival Swiggy could acquire it.

Uber's food delivery business Uber Eats is likely close by March this year. Bengaluru-based Swiggy could acquire it under a share swap deal.

Two years ago California based transportation company Uber started its food delivery service in India, now it seems that it didn't play well or tastes bitter to it in this field. According to a report by Economic Times, Swiggy will acquire Uber Eats India in a share swap deal. It is in the final stage of negotiation to sell its India business to Swiggy.

This will be Swiggy's largest ever acquisition. The deal may close by next month. The transaction will be in form of share swap by giving Uber a stake of 10% in Swiggy. The Bengaluru-based Swiggy last valued $3.3 billion. 

Sources said that Uber Eats had also talked to Zomato, but those talks fell through. Since few years Swiggy and Gurgaon-based Zomato, both are raising funds to acquire more customers. On the other hand, Ola’s Foodpanda is also in expansion to small towns and cities.

Uber Eats India burned around $25 million on an average 9 million orders per month while Swiggy burns $40-45 million for 27 million orders per month.

A source close to the deal said,

It is prudent to be invested in Swiggy than burn capital competing for the same set of restaurants and consumers. This should bring some rationality to the food-delivery market.

Hopefully, this will raise the competition between the two major players Zomato and Swiggy. Time will tell exiting this field is profitable for Uber or not.