Wait for a second, you probably not able to order food on Uber Eats. It’s good or bad, you decide, as online food delivery and restaurant discovery platform, Zomato has acquired Uber Eats in India. You will no longer be able to order food from Uber Eats in India, but you will be able to find most those restaurants on Zomato and order through it.
In what said to be deal size pegged around $350 million or Rs 2,485, Zomato has acquired Uber Eats in India. The all-stock deal will give Uber Eats parent company, Uber about 9.99 per cent stake in Zomato.
Here, what all changed with the deal, Uber Eats in India will cease to exist with users to its app and website been redirected to Zomato for food ordering. Around 70,000 delivery partners or the delivery boy who delivers food to your door-step on the Uber Eats network will become part of Zomato’s fleet. In addition, Zomato will also bag Uber Eats restaurant partners.
“Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication,” commented Dara Khosrowshahi, CEO of Uber. “We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he further added.
According to media reports, around 200 Uber Eats India employees will be affected by these deals, as Zomato won’t be taking them in. Uber plans to reallocate some of this impacted employees on its ride-hailing business, but others would be laid off.
Interestingly, with this deal, Zomato’s market share would jump to 52 per cent (combining Uber Eats and Zomato) beating out its arch-rival Swiggy’s 43 per cent (according to Redeer report). This would also help Zomato to strengthen its presence in cities in South India, which is said to be a stronghold of Swiggy.