Uber Technologies Inc. has sold its Indian food delivery business to Zomato, one of that country's largest app-based food delivery services, according to a release from the companies. 

Terms of the all-stock transaction were not disclosed, but Uber will hold a 9.99% stake in Zomato as part of the deal.

"Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn't be prouder of their ingenuity and dedication," Uber CEO Dara Khosroshahi, said in the release. "India remains an exceptionally important market to Uber and we will continue to invest in our local Rides business, which is already the clear category leader."

He said Uber was impressed by the ability of Zomato to "grow rapidly in a capital-efficient manner" and said they wish the company continued success. 

"We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India," Deepinder Goyal, CEO of Zomato, said in the release. "This acquisition significantly strengthens our position in the category."

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