Food delivery startup Zomato announced on Tuesday its acquisition of Uber’s Food delivery business- UberEats. The deal was acquired in an all-stock deal and the estimated value is around $350 Million.
According to this deal, Uber gives 9.99% ownership to Zomato. The estimated value is around Rs 2,492 crore. Ubereats was launched in India in 2017 and struggled during its launching days.
Via: The Hindu
The main reason behind this acquisition was Zomato and its rival partner Swiggy dominated the food delivery business in India.
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
CEO and Founder of Zomato Deepinder Goyal 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,”
Via: The Quint
Ubereats acquired 12% of the market that included a partnership with almost 26,000 restaurants. The company was backed by Alibaba’s Ant Financial.