MEGA MOVE: Zomato buys Uber Eats in India for 9.99% stake - Here's how it'll impact users

India’s leing food delivery aggregator Zomato acquired Uber Eats India in an all-stock transaction, giving Uber 9.99 per cent ownership in Indian startup backed by China’s Ant Financial, a subsidiary of Alibaba. latest acquisition could push Zomato as a clear leer in food delivery business in India where it is in direct competition with ar Indian startup Swiggy. 

Uber Eats, which entered Indian food delivery business in 2017, will longer be available with immediate effect. Zomato said that Uber Eats will discontinue its operations in India and direct restaurants, delivery partners, and users of Uber Eats apps to Zomato platform. 

How it affects users

Indian users of Uber Eats app, who have ordered from food delivery platform since July 1, 2019, have ir account set up on Zomato automatically. Users who are looking for help with ir past orders can reach to Uber’s customer service through http://help.uber.com/ubereats.

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Impact on Uber Eats India employees

According to media reports, Uber sealed acquisition deal with an estimated value of around $350 million (Rs 2,492 crore approx). But acquisition is reportedly impacting about 200 Uber Eats India employees as Zomato has t agreed to absorb m.  

Zomato, which has a presence across 24 countries and serves more than 70 million users every month, recently received fresh funding of $150 million from Ant Financial. After latest deal, Zomato would be looking to dilute losses incurred in 2019 that saw a 24 times jump to Rs 2058 crore from Rs 84 crore in preceding year.

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CEOs speak

“We are proud to have pioneered restaurant discovery and to have created a leing food delivery business across more than 500 cities in India. This acquisition significantly strengns our position in category,” said Deepinder Goyal, Founder and CEO, Zomato, in a statement.

Dara Khosrowshahi, CEO of Uber Techlogies, Inc., said that India remains an ‘exceptionally important’ market to Uber and company will invest in growing local Rides business.

“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish m continued success,” said Khosrowshahi in a statement.

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