Uber said on Tuesday it has sold its food delivery business, Uber Eats, in India to local rival Zomato as the American ride-hailing giant races to shed lossmaking operations to become profitable by next year.

As part of the deal, Uber would own 9.99% of Zomato and its Eats users would become part of the Indian company, the two loss-making firms said. The deal valued Uber Eats’ India business between $300 million and $350 million, a person familiar with the matter told TechCrunch.

TechCrunch reported last month that the two were in advanced stages of talks for a deal. Indian newspaper Times of India first signaled about the two companies’ talks in November.

Satish Meena, an analyst at Forrester, told TechCrunch that despite the Uber

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