Uber Technologies Inc. has sold its food delivery business in India to rival Zomato Media Pvt. Ltd. in an all-stock transaction, according to a Jan. 20 release.

The move confirms earlier reports that the ride-hailing company was holding discussions about a possible sale of Uber Eats India.

Under the deal, Uber will own 9.99% of Zomato in exchange for the transfer of its food business in the country to privately held Zomato, which also operates a restaurant search and discovery website. Zomato attracts user traffic of more than 70 million every month.

Pursuant to the transaction, Uber Eats in India will cease operating, and the platform's restaurant and delivery partners will be directed to the Zomato platform.

"India remains an exceptionally important market to Uber and we will continue to invest in growing our local rides business," said Uber CEO Dara Khosrowshahi.

Zomato counts Ant Financial Services Group, Sequoia Capital Operations LLC and German peer Delivery Hero SE among its backers.