Zomato Buys Uber Eats for $350 Million
Food delivery start-up Zomato has agreed to buy Uber Technologies Inc's Indian food delivery business in an all-stock deal. This will give Uber a 10 per cent stake in Zomato, a food delivery business that has the backing of Alibaba's Ant Financial.The deal value is estimated at $350 million.
Uber Eats which was launched in 2017 by Uber Technologies Inc reportedly struggled to take off; facing stiff competition from Zomato and local rival Swiggy, that continue to dominate the food delivery market in India. Zomato has pioneered the concept of restaurant discovery and has created a leading food delivery business in 500 cities across India.
Uber Eats will discontinue it's operations in India and direct restaurants, delivery partners as well as users to the Zomato platform. Zomato announced that it has secured $150 million in funding from Ant Financial, a subsidiary of China-based giant, Alibaba. Zomato's acquisition of Uber Eats is the latest example of consolidation in the global food delivery market.