Zomato, Indian online food delivery business startup on Tuesday said that it agreed to buy Uber Technologies Inc’s Indian food delivery business in an all-stock deal. With this deal, Uber will have a 10% stake in the Zomato.
Zomato buys Uber Eats Food Delivery Business in India
Zomato is backed by Alibaba’s Ant Financial. Economic Times newspaper reported that the deal is worth around $350 million which is approximately Rs 2,492 crore in Indian Rupees.
After launching in 2017 in India, Uber Eats had struggled to make any impact as it had two big competitors Zomato as well as Swiggy. So, Uber Eats were having problem competing with the two companies which dominated the food delivery industry in India.
Zomato said that Uber Eats will discontinue its operations in India. All its restaurants, delivery partners and users are diverted to the Zomato platform and it shows in the Uber Eats app.
Deepinder Goyal, Founder and CEO of Zomato was quoted as saying, “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,”.
Dara Khosrowshahi, CEO of Uber, said, “India remains an exceptionally important market to Uber and we will continue to invest in growing our rides business, which is already the clear category leader”. He further added, “We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success.”
A statement released by Uber Eats read: “We have announced today that Zomato has acquired Uber Eats in India. As such, you will no longer be able to order from Uber Eats in India, but you will be able to enjoy your favorite meals with exciting offers tailored for you on Zomato.”
“You can still get rides via the Uber app, which remains active and available. And you can still use Uber Eats if you’re traveling outside India. Until then, we hope you will enjoy many more tasty moments and discover great restaurants around you on Zomato,” the statement added.