Well, in today’s exceedingly volatile economy, it’s good to understand that a minimum of someone has access to mention, 350 million dollars (!) – and it’s Zomato, which has bought Uber Eats in India. This deal now gives Uber 9.99% ownership in Zomato.
Starting Tuesday, Uber Eats in India will discontinue operations and direct restaurants, delivery partners and users to the Zomato platform accordingly. Zomato CEO Deepinder Goyal said,
Uber Eats India is now Zomato. Here’s to better food for more people, and new beginnings.
— Deepinder Goyal (@deepigoyal) January 21, 2020
We are proud to possess pioneered restaurant discovery and to possess created a number one food delivery business across quite 500 cities in India. This acquisition significantly strengthens our position within the category
As per a news daily, The deal comes close on the heels of Zomato raising $150 million in funding from existing investor Ant Financial, an Alibaba affiliate, at a $3 billion valuation.
While Swiggy is small before Zomato within the food delivery space, Uber Eats coming onboard with Zomato will surely provide it more firepower to stake on Swiggy because the new entity will automatically capture 50-55% market in food delivery business
Zomato and Uber declined to comment when contacted them. The transaction, which has been within the works for quite a year, marks the primary big consolidation move within the hotly contested and cash-intensive online food-delivery market, led by Swiggy and Zomato.
With the acquisition browsing, the combined entity of Zomato and Uber Eats India is predicted to corner quite a 50-55% market in terms of the amount and value of orders, pulling it before Swiggy.
Uber which has underperformed the market after going public last year, has been shuttering or downsizing its loss-making units and geographies. With a cash burn of $20 million per month in India, the business was among the low-priority ones for the corporate. Last year, Uber said in its quarterly results announcement that the Indian food delivery business has been a haul for it.