Uber sells its food delivery business to Zomato; signs deal at $350 million

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 India is now Zomato. Here's to better food for more people, and new beginnings.

For more details: https://t.co/cq8Wp9ikOk pic.twitter.com/nK4ICY2ikW

— Deepinder Goyal (@deepigoyal) January 21, 2020

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.