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Uber Sells Its Food Delivery Business In India To rival Zomato For 9.99 Per Cent Stake In Gurugram-Based Company
Zomato logo (Twitter image)
Food delivery platform Zomato on Monday (21 January) said that it has acquired the Indian business of Uber Eats in an all-stock deal that will give the Uber 9.99 per cent stake in the Gurugram-based company, reports The Hindu.
Following the deal, the Uber Eats will discontinue its operations in India and direct restaurants, delivery partners, and users of its mobile applications to the Zomato platform, effective Tuesday (22 January), according to a statement.
According to the report, the deal comes days after Zomato had raised $150 million in funding at a $3 billion valuation from existing investor Ant Financial, an affiliate of Chinese Alibaba group.
Info Edge (India), a shareholder in Zomato, in a regulatory filing to BSE said that its shareholding in the company will stand reduced to about 22.71 per cent on fully converted and diluted basis after closing of the transaction.
“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,” Zomato CEO Deepinder Goyal said.
Uber Eats, which was facing stiff competition from Zomato and Swiggy, had entered India in 2017 and has about 26,000 restaurants from 41 cities listed on its platform.
The discussions about the acquisition has been going on for months between the two companies.
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