- Uber Technologies, Inc (NYSE:UBER) had weighed strategic options for its Indian ride-hailing business, including a sale, but suspended discussions following the meltdown in tech startup valuations, the Bloomberg reports.
- Uber began weighing alternatives, including a stock swap with local companies or a pullout, before a global equity market selloff spoilt the plans.
- Uber preferred a stock deal helping it retain a foothold in India for the future.
- Uber and its local-rival Ola struggled to earn profit in a rapidly growing price-sensitive market, with constant driver attrition, Bloomberg noted.
- A sale to a local operator could have led to similar deals Uber had struck with DiDi Global Inc (OTC:DIDIY) in China and Grab Holdings Limited (NASDAQ:GRAB) in Southeast Asia.
- Under these deals, Uber had ceded the markets but kept an equity stake in the dominant local player to tap future growth ending costly turf wars waged with driver incentives and cash subsidies.
- Uber has denied exploring an exit strategy in India. Uber clarified remaining committed to India and continued aggressive hiring.
- In May, Uber signaled its plans to capitalize on robust ride demand without compromising profits by focusing on product changes to address a driver shortage.
- India and Japan were the sole major remaining Asian markets for Uber, which has scaled back sharply since former chief Travis Kalanick.
- Uber recently resumed ridesharing in select U.S. cities with a twist.
- Price Action: UBER shares traded lower by 0.24% at $29.35 in the premarket on the last check Wednesday.
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