(Reuters) - Yum China Holdings Inc (YUMC.N) said it would buy a controlling stake in food delivery services firm Daojia to expand delivery services for its KFC and Pizza Hut chains in the country.
Terms of the deal to buy the majority stake in the holding company of DAOJIA.com.cn (unrelated to another online site 58 Daojia) were not disclosed.
Daojia, which also operates food delivery service Sherpa's, focuses on higher-end orders in large cities in China, including Beijing, Shanghai, Guangzhou and Shenzhen.
"Digital and delivery are long-term strategic drivers of our business, and I am pleased to build on our technological know-how and capabilities in this high growth area," Yum China Chief Executive Micky Pant said in a statement.
Reuters reported in November, citing sources, Yum China was in talks to buy Daojia for up to $200 million as the biggest operator of fast food on the mainland seeks to boost sales from customers dining at home.
Delivery represented about 12 percent of Yum China's sales in the first quarter, the company said.
Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Arun Koyyur