By Tuesday 21st Jan Uber announced that its food delivery business sold to Zomato in an all-stock deal in India
This deal between Zomato & Uber Eats is only applicable in India, they will continue providing services in Bangladesh and Sri Lanka.
The Value of deal between Uber Eats & Zomato is around $300- 350 million as per resource.
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 pic.twitter.com/WEbJNaJY8M
— Uber Eats India (@UberEats_IND) January 21, 2020
A Deal says that Uber Eats will get around 9.9 % stake in Zomato, but the things is that size has not been disclosed yet. Zomato market share to reach 52%. Expert says this deal will help Zomato to increase their market value in the food delivery industries.
Currently Uber Eats providing food delivery service in approx 41 Cities around India. All the customer of uber eats will be shifted to Zomato app by 7 AM 21st Jan. Uber Eats App shows below the screen to their mobile app user to use Zomato for your next Food Order.
“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,” said Deepinder Goyal, CEO of Zomato.
Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication. India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader. We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success.” said Dara Khosrowshahi, CEO of Uber. ”
Uber Eats India is now Zomato. Here's to better food for more people, and new beginnings.
— Deepinder Goyal (@deepigoyal) January 21, 2020
Sources say this move is expected to push Zomato to the top slot in the food industries, by pushing down Swiggy. It’s all about Market game and competition.
By at the end, uber eats employee will be affected by this deal & they are worried about their job.