Uber has said the food delivery market in India is very competitive and the ride-hailing firm’s food delivery service Uber Eats currently holds the third position in the market.

“There are a few very strong competitors there. Generally, I would tell you that we want to be the number one or number two in every single market. Right now in India, we’re the number three. We’ve proven our ability to win in rides, and my expectation is the same on the Eats side,” CEO Dara Khosrowshahi said in Q2 2019 earnings call. Khosrowshahi, however, said India is Uber’s ‘big market’ in terms of the rideshare side.

Swiggy and Zomato, backed by deep-pocketed Naspers and Ant Financial, respectively, lead India’s food delivery market. While Swiggy so far mopped up close to $1.5 billion in funding, Zomato raised close to $800 million in funding till date. According to analysts, Swiggy and Zomato jointly delivered about 96 million orders in the year to March 2018.

Swiggy posted 232.17% jump in revenue to Rs 441.99 crore in FY18. Zomato’s revenue increased to Rs 371.03 crore in FY18 from Rs 245.11 crore in FY17, according to documents sourced from business intelligence platform Tofler.

Earlier this year, Uber, in its IPO filing, had said Swiggy and Zomato have significant product advantages as the companies have substantial market-specific knowledge and established relationships with local restaurants. “As a result, such competitors may be able to respond more quickly and effectively than us in such markets to new or changing opportunities,” Uber had said. Uber had indicated it is spending heavily on incentives and promotions to drive growth in India as competitors Swiggy and Zomato are well-capitalised.

Analysts estimate food delivery firms’ monthly operating cash burn to be about $30 million. Uber Eats made its launch in India in 2017 and currently operates in over 35 cities. Zomato is present in 500 cities while Swiggy delivers in over 290 cities.

Reportedly, Uber is looking to sell its Uber Eats India business and is in talks with potential partners. Recent reports indicated that Amazon is in preliminary discussions to buy Uber Eats India unit. Chief financial officer Nelson Chai said Uber Eats has a very low ‘negative’ take rate in India.

In the three months ended June, Uber Eats’ revenue grew 72% to $595 million compared to the year-ago period. However, ride-sharing revenues increased by a mere 2% to $2.34 billion in Q2 2019 against Q2 2018, the company said. Net loss jumped to $5.2 billion in the quarter from losses of $878 million posted in the year-ago quarter.