Zomato Acquires Uber Eats Food Delivery Business In India

Uber Sells Indian Food Delivery Arm to Zomato

The all-stock transaction was announced early on Tuesday, and gives Uber a 9.99 percent stake in Zomato. Zomato will also get about 70,000 active delivery partners on the Ubereats network as a part of the deal besides restaurants.

Uber Eats in India has discontinued operations.

"Zomato has acquired Uber Eats in India and we'll no longer be available here with immediate effect", the company tweeted. Some of the users coming from Uber Eats are being offered complimentary three-month access to Zomato Gold, a subscription-based membership program, in addition to discount vouchers. Once you have launched the Uber Eats app, you will be greeted with a screen which will inform you that the service has been taken over by Zomato. It just means that you have not updated the Zomato app. Update it, and return to the Uber Eats app to click on the "Go to Zomato" option. "Until then, we hope you will enjoy many more tasty moments and discover great restaurants around you on Zomato", said the statement.

The deal marks yet another leg in a wave of consolidation sweeping the food delivery sector.

Zomato cofounder and CEO, Deepinder Goyal, also confirmed that the acquisition significantly strengthens Zomato's position in the category. It was competing with Zomato as well as Swiggy in the segment.

"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business", Uber's Chief Executive Officer Dara Khosrowshahi said. Due to stalled growth and increasing losses, rumors of the company selling the business to rivals picked up steam early previous year.

Uber Eats has been under consistent monetary investigation soon after its roll-out in the country, and especially, after a year of testing waters. For the last five months of December, Uber projected negative revenue of Rs 762.5 crore in Uber Eats India. In the almost three years since its began operations in India, Uber Eats built a strong presence in tier-II cities of the country that would now boost Zomato's presence in such cities, particularly given Swiggy's aggressive push throughout the country.

Related:

Comments


Other news