Uber sells its food delivery business in India to local rival Zomato
Category: #headlines |   By Saipriya Iyer |   Date: 2020-01-21

Uber sells its food delivery business in India to local rival Zomato

With the food tech battle in India heating up, it appears that ride-hailing giant Uber is exiting the food delivery business. The company had been in advanced talks to sell its food delivery platform Uber Eats to local rival Zomato for quite some time.

Zomato recently announced it has agreed to take over Uber Eats in an all-stock deal. With this transaction, Uber Technologies Inc will reportedly acquire a 10% stake in Zomato.

According to sources familiar with the development, the transaction is estimated to be worth $350 million (Rs 2,492 crore). With the acquisition of Uber Eats, Zomato is seemingly looking to once again consolidate its position in India’s overcrowded food delivery market.

Uber Eats, as per a statement from Zomato, will discontinue operations in India and direct restaurants, users, and delivery partners to Zomato, effective immediately. This change already reflects on the Uber Eats app.

This apparently indicates that users in India will no longer be able to order from Uber Eats, but will be able to enjoy their favorite meals through exciting offers tailored for them on the Zomato app.

The Zomato team is proud to have pioneered restaurant discovery and to have established a dominant food delivery business in more than 500 cities across the country, said Zomato founder and CEO Deepinder Goyal, adding that the deal significantly strengthens its position in the category.

The Uber Eats team in India, according to Uber CEO Dara Khosrowshahi, has managed to achieve incredible success in recent years. Zomato’s ability to expand exponentially in a capital-efficient manner has been exceptionally impressive, he added.

India is a key market to Uber and the company said it will continue investing in expanding its ride-hailing business, which is currently the clear category leader.

Uber said users can still use the Uber app, which is still active available, to get rides. Also, users traveling outside India will still be able to order using Uber Eats. Until then, users will be able to enjoy many more tasty moments and discover great new restaurants around them via Zomato.

The food delivery category in India will continue to grow over the next couple of decades as restaurants and food services providers work in hand-in-hand to offer better food for more people, Goyal noted.

 

Source credits: https://www.ndtv.com/india-news/zomato-buys-ubers-food-delivery-business-uber-eats-in-india-for-350-million-report-2167154

  • shareShare
  • Twitter
  • Facebook
  • LinkedIn


About Author

Saipriya Iyer     Twitter

Saipriya Iyer

A content developer by choice, Saipriya Iyer holds a rich experience portfolio of more than five years in the content creation domain. Equipped with substantial expertise across the business, technology, and finance domains, Saipriya currently pens down insightful art Read more...

More News By Saipriya Iyer

Infosys to open office in Calgary, aims to hire 1000 people by 2024

Infosys to open office in Calgary, aims to hire 1000 people by 2024

By Saipriya Iyer

Tech giant Infosys, which has operations in 50 countries, will set up its digital center in Gulf Canada Square. Over the next two years, Infosys aims to create 1,000 new jobs in Calgary by 2024, according to reliable reports. This was almost doubl...

Government-led initiatives can address Africa's food insecurity, claims report

Government-led initiatives can address Africa's food insecurity, claims report

By Saipriya Iyer

A new report released recently in the Rwandan capital of Kigali has urged African governments to take the lead and coordinate internal and external initiatives to address the continent’s food insecurity swiftly and comprehensively. The Allia...

Iron Pillar seeking USD 400 million to empower tech startups in India

Iron Pillar seeking USD 400 million to empower tech startups in India

By Saipriya Iyer

An investment company that is known to back tech startups, Iron Pillar, is reportedly looking to raise around USD 400 million to help boost the startup ecosystem in India. The venture capital firm is already in advanced deliberations with limited par...