Indian restaurant aggregator and food delivery start up, ZOMATO acquired San Francisco based online food ordering and delivery platform UBER EATS in an all stock deal in INDIA.
The deal gives UBER a close to 10% stake in ZOMATO.
The deal is aimed at slashing UBER’s losses in the food delivery business in India.
The American food delivery platform will no longer exist as an exclusive food delivery brand in INDIA. It’s customers will automatically be redirected to ZOMATO now.
This transaction marks the first big move in the Indian food delivery market.
ZOMATO has a delivery base of around 550 cities in INDIA.
With this acquisition, UBER EATS and ZOMATO combined will cover 50-55% of the food delivery market. This will help ZOMATO trail ahead of SWIGGY.
UberEats India on 21 Jan,2020 (Tuesday) tweeted “We entered food delivery in India in 2017 and today is when our journey takes a different route. Zomato has acquired Uber Eats in India and we’ll no longer be available here with immediate effect. We wish all our users more good times with great food on the road ahead”
while ZOMATO tweeted “It’s a big day for us and an even bigger one for Uber Eats India – all of us at Zomato want to thank everyone who has contributed to making Uber Eats India what it is today and especially you, the foodies. We look forward to this new beginning and exciting times, together ?”