Zomato revealed today that it ha agreed to buy Uber Technologies Inc’s Indian food delivery business in an all-stock deal, which will give Uber a 10% stake in Zomato, said the report.
A report suggests that the deal value is estimated to be $350 million or approx. INR 2492 crore.
“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Deepinder Goyal, Founder, and CEO of Zomato.
Zomato revealed Uber Eats in India would discontinue operations and direct restaurants, delivery partners, and users to the Zomato platform, effective immediately – A change that already reflects on the Uber Eats App.
Dara Khosrowshahi, CEO of Uber, said that Uber Eats team in India has achieved an incredible amount over the last two years. “India remains an exceptionally important market to Uber and we will continue to invest in growing our rides business, which is already the clear category leader,” Mr Khosrowshahi said, adding, “We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success.”