According to sources zomato on tuesday announced that it has acquired Uber's Food Delivery business in india in an all-stock deal and uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform. Perhaps according to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore. Furthermore uber Eats in india will discontinue operations and direct restaurants, delivery partners, and users of the uber Eats apps to the zomato platform, effective from Tuesday.
Goyal, Founder and CEO, zomato said "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". Furthermore earlier uber started its food delivery service in india around mid-2017, but has not been able to scale up in the face of big players like zomato and swiggy and it currently has nearly 26,000 restuarants listed on its platform from over 40 cities.
Moreover the market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in india is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023. Apparently uber CEO Dara Khosrowshahi said that the uber Eats team in india has achieved an incredible amount over the last two years. Moreover on january 10, zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.
