Published 15:37 IST, December 16th 2019
Zomato-UberEats all set for a merger: Report
Ride-hailing company Uber has reached advanced stages of talks to sell its food-delivery business to rival Zomato, according to reports. Full details here.
Ride-hailing company Uber has reached advanced stages of talks to sell its food-delivery business to rival Zomato, according to reports. If everything goes as per the plan, UberEats' India Business is likely to finish the merger with Zomato by the end of this year. At the moment, the deal value UberEats' India business at around $400 million, TechCrunch reports.
According to reports, Uber is said to infuse between $150 to $200 into Zomato. Previously, Zomato founder and CEO Deepinder Goyal had said that the company is looking to raise up to USD 600 million (around Rs 4,276 crore) next month in a new funding round.
Zomato-UberEats merger is likely ahead of Amazon's entry in India's food-delivery market. Amazon is gearing up to launch its own online food delivery division to compete with Swiggy, Zomato and UberEats in the Indian market. It seems like Amazon has plans to disrupt the food retail business and gain maximum market share in the segment.
Previously, there were reports that Amazon has a reserved capital of Rs 3,500 crores to expand into online food delivery business in the country
Amazon India already has its existing workforce of delivery partners in place and the chances are that Amazon would put its current workforce of delivery partners to use in order to speed up the delivery process and stay ahead of the competition. As of December last year, Swiggy held almost half of the market share in terms of the number of orders, followed by Zomato and FoodPanda.
On the journey of Zomato, Goyal had said earlier: "We started very small. We started 11 years ago and we are now present in 550 cities in India and we serve around 48 million people every month." Outside India, Zomato serves about another 25 million people, he added.
Updated 15:54 IST, December 16th 2019