Uber Technologies Inc. is in advanced talks to sell its Uber Eats operations in India to local competitor Zomato, TechCrunch reported Dec. 16, citing three people familiar with the matter.

Zomato is an Indian startup that specializes in food delivery and restaurant discovery. It is backed by Ant Financial Services Group, an affiliate of China's Alibaba Group Holding Ltd.

One of the sources reportedly said the deal currently values the Uber Eats business at $400 million. The people also said Uber could invest an additional $150 million to $200 million in Zomato as part of the transaction.

Meanwhile, a report by The Economic Times (India) placed the possible investment between $100 million and $200 million. The newspaper reported that the capital injection is expected to go to the combined entity of Zomato and UberEats.

"Zomato will go ahead with the acquisition only if Uber invests in the joint entity," one the sources reportedly said. "They want Uber to have skin in the game else it won't make sense for the Indian company."

Uber's initial asking price for the business was at about $500 million, according to a report by The Times of India on Nov. 25, citing three sources on the matter.

The move could enable Uber to turn a profit, The Times of India reported. Uber discontinued Uber Eats in South Korea in October due to intense competition.

Spokespersons for both Uber and Zomato told S&P Global Market Intelligence that the companies do not comment on rumors or speculation.

The development comes after Germany's Delivery Hero SE agreed to acquire South Korean technology company Woowa Brothers Corp. for €3.6 billion as part of its expansion into Asia.

As of 1:10 p.m. ET, shares of Uber were trading at $29.86, up 4.85%.