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Uber India Is Said to Have Explored a Sale of Ride-Hailing Arm

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Uber Technologies Inc. explored options for its Indian ride-hailing business, including a sale, but suspended discussions after tech startup valuations cratered, people familiar with the matter said.The US company began weighing alternatives and reached out to several interested parties after recognizing it had limited potential for profitable expansion in the country, the people said, asking not to be named as the information is not public.

It pondered a stock swap with local companies or even a pullout, before a global equity market rout upended plans, the people added.

A stock deal was favored in exploratory talks as that would allow Uber to retain a foothold in India, the people said.Uber and its local-rival Ola had been struggling to eke out a profit in a rapidly growing but price-sensitive market, where constant driver attrition was pressuring margins.

A sale to a local operator could have mirrored similar deals it struck with Didi Global Inc. in China and Grab Holdings Ltd.

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