Wedbush analyst Ygal Arounian notes that Uber officially sold its food delivery business in India to Zomato, a well-established local competitor in exchange for 9.99% of the Indian start-up and about $35M in cash for reimbursement by Zomato of goods and services tax. Given Zomato's recent valuation of $3.55B in the private markets, this would value the sale at roughly $355M and ends a dark chapter for Uber Eats in India which has struggled to gain share versus entrenched domestic competitors Zomato and Swiggy, the analyst contends. Arounian views the sale of the Indian food delivery business as smart and says it should help improve the bottom-line structure on Uber Eats. The analyst maintains an Outperform rating and $45 price target on the shares.

Jefferies raised the firm's price target on Uber to $103 from $100 and keeps a Buy rating on the shares. Results should display continued focus on using non-core investments to drive elevated GBV growth, though avoiding a material drop in incremental margins is key to keep investors positive, the analyst tells investors in a preview note for the U.S. Internet group.