Zomato acquires Uber Eat Operations in India
Published: January 22, 2020
The Indian food delivery start-up firm Zomato has acquired the American multinational company Uber’s food delivery platform, Uber Eats, in India.
As per media reports, Uber gets a 10 percent ownership in Zomato along with a USD 350 million (Rs 2,485 crore) all-stock exchange. After the acquisition, Uber Eats will discontinue its operations in India. It will also re-direct its restaurants, delivery partners, and customers using the Uber Eats apps, to the Zomato platform. This deal will cut the loss-making business of Uber and it will continue to focus on improving its ride-hailing business in India. The combined entity of Zomato and Uber Eats will be expected to acquire more than 50 percent market share after acquisition is completed that will pull them ahead of Indian food delivery company Swiggy in terms of value of orders and number as in December 2019, Swiggy received a daily average order of 14 lakh, Zomato 12 lakh while Uber Eats 4 lakh.
Category: Economy & Banking Current Affairs