Reportedly online food delivery industry in india is set for a big churn as uber has reportedly entered advanced stages of talks to sell UberEats’ india business to rival zomato by the end of this year.
According to a TechCrunch report on monday citing sources, the deal "currently values UberEats' india business at around $400 million". Meanwhile the report claimed, citing sources as part of the deal, "Uber may invest between $150 to $200 million in Zomato".
Furthermore as an event in delhi earlier this month, zomato Founder and CEO Deepinder Goyal said the company is aiming to raise up to $600 million in a new funding round. Further when contacted, zomato said it "does not comment on rumours or speculations". Reports added Uber’s investment will come into the merged entity of zomato and UberEats. The fund infusion will be a part of the share-swap deal and the report also states that if the merger goes through, it will create the country’s largest food delivery company.
Apparently despite arriving in the indian market in 2017, UberEats has not made enough inroads in the online food delivery segment. Currently zomato is delivering 1.3 million orders a day from 150,000 restaurants across india at more than 10 orders per restaurant per day. Perhaps swiggy has expanded its services to 500 cities in india, matching rival Zomato's reach in the country. swiggy, which has added 60,000 new restaurants in the past six months, said in october it would expand to 600 cities by december 2019.
