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Uber stock gains after sale of India food-delivery business

Uber Technologies Inc. shares are up 1.7% in premarket trading Monday after the company disclosed that it had completed the sale of its India food delivery business to Zomato, a local player, for a 9.99% stake in the company and about $35 million in cash. “Given Zomato’s recent valuation of $3.55 billion in the private markets, this would value the sale at roughly $355 million and ends a dark chapter for Uber Eats in India which has struggled to gain share vs. entrenched domestic competitors Zomato and Swiggy which together control roughly 80% of the food delivery market in India,” Wedbush analysts Ygal Arounian and Daniel Ives wrote in a note to clients. They said that there are many markets in which Uber’s management needs to determine whether it should exit due to the difficulties of becoming a market leader. Shares are up 12% over the past three months, as the S&P 500 has added 11%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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