Uber ride sharing and food delivery businesses in India valued at $369 mn
Uber’s ride sharing and food delivery businesses in India have been valued at $265 million and $104 million respectively, according to recent regulatory filings. The San Francisco-headquartered shared mobility major recently transferred the two businesses to a local arm.
The valuation of the two businesses is a part of an arrangement through which Uber BV, a Dutch subsidiary of Uber Technology Inc, transferred its cab and food aggregation business in India to Uber India Systems.
Uber India Systems will receive all operational contracts and data of local rides and food delivery business. As per the earlier structure, Uber India Systems provided support and marketing services to Uber BV, which did not have a business presence in India.
The company’s taxi business consists of the online transportation platform connecting riders with independent transport providers while the restaurant business consists of linking users to restaurant partners and delivery partners.
Uber BV will receive 1.6 crore shares of Uber India Systems worth Rs 2,539 crore in return for transferring the two businesses.
The company had appointed BSR and Associates to undertake the valuation.
Uber has not disclosed the reasons behind the restructuring exercise. However, media reports said that it was mainly done to avoid tax hassles as the old corporate structure led to delayed transactions with large clients.
Uber Technologies Inc
Uber Technologies Inc reported its earnings for the quarter ended September 30, with a 30% growth in revenues to $3.8 billion, led by healthy improvement in its rides and food delivery businesses.
The ride sharing business grew 19% in Q3 to $2.9 billion while the restaurant division saw 64% growth to $645 million. Uber’s freight and new mobility units also showed improvement during the quarter.
Despite the revenue jump, Uber’s net loss widened to $1.2 billion from $647 million on account of stock-based compensation expense.
“Our results this quarter decisively demonstrate the growing profitability of our rides segment. Rides adjusted EBITDA is up 52% year-over-year and now more than covers our corporate overhead. Revenue growth and take rates in our eats business also accelerated nicely,” said Dara Khosrowshahi, chief executive officer of Uber Technologies.
Khosrowshahi was recently in India and launched a public transport feature on its app for first and last mile connectivity in Delhi.
Uber Technologies’ cash and cash equivalents stood at $12.7 billion, up $0.9 billion on quarter due to the sale of $1.2 billion of senior unsecured notes and the closing of the $1 billion investment in Advanced Technologies Group.