Zomato just bought UberEats in India: Details here
As previously expected, restaurant discovery and food delivery giant Zomato has purchased the food delivery business of Uber, aka UberEats, in India. The deal, which had been brewing over the last few months, makes Zomato the biggest food delivery company in India by size and the volume of food orders. Here's all you need to know about it.
All-stock deal to acquire UberEats
Zomato has acquired UberEats in an all-stock which gives Uber a 9.9% stake in the Gurugram-based company, Business Standard reported The value of the deal is estimated to be around $350 million (about Rs. 2,485 crore), but that is only for the Indian business of UberEats. The Uber-owned service will continue to operate in other regions, including Bangladesh and Sri Lanka.
Here's the tweet from Zomato's founder after the acquisition
All drivers, users to be migrated to Zomato
As part of the deal, all the drivers, users, and restaurants associated with UberEats India, which operated in 41 cities, will be migrated to Zomato. The transition will begin with the transfer of users from January 21 and will make Zomato the biggest player in the food delivery category by size and order volumes, even ahead of Swiggy.
There will be some overlapping for sure
Having that said, the migration of users and restaurants might see some overlapping, as people tend to keep an account on two or more food-delivery services to get the best deals.
UberEats never really took off against Zomato and Swiggy
Still, the acquisition of UberEats by Zomato doesn't come as a complete surprise. Since its debut in mid-2017, UberEats had only risen up to the third spot in India's food-delivery sector. It initially offered discounts to gain traction but could process a maximum of 500,000-600,000 orders each day. Meanwhile, competitors Zomato and Swiggy processed more than twice of it every day.
