Now Uber Eats and Zomato will serve food to their customers together as Zomato on January 21 has acquired the Indian business of Uber Eats in an all-stock deal. Under this agreement, Uber will give a 9.99% stake in the Indian food delivery and restaurant discovery platform.
After this deal with Zomato, Uber Eats will discontinue its operations and direct restaurants, delivery partner and users of the apps to the Zomato platform, effective Tuesday, a statement said.
According to the report, the deal value between Zomato and Uber Eats is estimated at around $350 million or approximately Rs 2,492 crore.
In a regulatory filing to BSE, Info Edge (India) - a shareholder in Zomato - said its shareholding in Zomato will stand reduced to about 22.71% on a fully converted and diluted basis upon closing of the transaction.
Uber Technologies Inc's food delivery business Uber Eats faced a difficult time to take its business to the sky because Zomatoa and other local rival Swiggy dominated the market in India.
The deal comes days after Zomato had raised $150 million in funding from existing investor Ant Financial, an Alibaba affiliate, at a $3 billion valuation.
“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,” Zomato CEO Deepinder Goyal said.
Uber Eats had started its business in India in 2017. The app has about 26,000 restaurants from 41 cities. Zomato’s restaurant discovery and food delivery platform has information for over 1.5 million restaurants across 24 countries and serves more than 70 million users every month.