Zomato Acquires UberEats India in all Stock Deal for INR 2500 Cr
One of the leading Indian restaurant aggregator and food delivery brand Zomato announced that it has bought UberEats for INR 2,485 Cr. While there is a neck to neck competition between other brands in the space and Zomato, UberEats hooking up with the company will strengthen the company’s status and drive it to stake on platform like Swiggy as the new venture could capture over 50 percent of the food delivery market.
Uber Eats India, the food delivery business of ride-hailing giant Uber claims to discontinue all the operations and direct all the restaurants, delivery partners, and its customers to the Zomato platform.
"We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category," said Deepinder Goyal, Founder and CEO, Zomato.
Zomato had recently secured USD 150 million find from Alibaba’s subsidiary Ant Financial. Uber Eats has also acquired an incredible amount from various means over the last two years. The startup has laid its footprints across 24 countries and serves more than 70 million users every month. It will not absorb Uber Eat employees, which means they will either be absorbed in Uber's other verticals or could face lay-off but there's little clarity on their future roles right now.
"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader," said Dara Khosrowshahi, CEO Uber.
"We have been very impressed by Zomato's ability to grow rapidly in a capital-efficient manner and we wish them continued success," he added.