Zomato acquires Uber Eats for Rs 2,485 crores
Parul January 22, 2020
MORE IN News
According to an official statement, online food delivery and restaurant discovery platform Zomato has acquired Uber Eats. Zomato has acquired the food delivery business of ride-hailing giant Uber India for around Rs 2,485 crore ($350 million) in an all-stock deal.
The deal gives the ride-hailing app a 10 per cent stake in Zomato. However, Zomato will not absorb Uber Eat’s employees, which means they will either be absorbed in Uber’s other verticals or could face lay-off.
The deal is a big jump for Zomato that has been looking to crack Swiggy’s stronghold in the southern states. Uber Eats will seize to exist as a separate Uber brand in India now and all its customers will be automatically redirected to Zomato’s app.
Presently, Swiggy is a little ahead of Zomato in the food delivery space right now, Uber Eats coming onboard with Zomato will surely give more firepower to take on Swiggy, and the combined entity will capture around 50-55 per cent market share.
Zomato founder Deepinder Goyal has said that Uber Eats India users would now become Zomato users. He quoted, “I want to assure Uber Eats India users that their user experience won’t be compromised in any way – if at all, the scale gives us higher density to make our deliveries faster. With Zomato, you’ll realise that we share a common love for great food.”