Food delivery business of Uber Eats Acquired by Zomato in an all-stock transaction
Indian restaurant aggregator and Gurgaon-based food delivery startup Zomato has acquired the Indian operations of American online food ordering and delivery platform Uber Eats, the food delivery biz run by Uber, for around $350 million.
On Tuesday, Uber Eats India – The food delivery business of riding giant Uber in India is sold to Zomato. According to the deal, Uber will get 9.99% in the Indian Startup Zomato.
Uber eats was launched in India in May 2017 and has been struggling to catch up with local rivals in India.
Users ordering food from Uber Eats will be redirected to the Zomato App soon. “The companies are in the process of moving restaurants and delivery workers on the Uber Eats platform over to Zomato” said a spokeswoman for the Indian Startup.
In an interview with a leading business daily CEO of Zomato, Deepinder Goyal said “We will get about 20% new users on a monthly active basis and manage 25% extra orders. This is because we expect 80% of their business will move to us” Zomato will not absorb Uber Eats’ team in India.
As per a renowned business analyst, Swiggy still tops the list in food delivery service, Zomato lags behind the local rival in delivering daily food orders.
Talking about Uber Eats India Dara Khosrowshahi, CEO of Uber said, “Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication,”
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Uber projected a loss of $107.5 million for its food delivery business Uber Eats in India between August and December last year. Divesting Uber Eats India will help Uber reduce its global losses.