Food apps Uber Eats announced that Zomato has acquired the app and they will no longer function in India. As per a report published on Bloomberg, the deal has been valued at 172 million dollars and Zomato will give Uber 9.99 per cent ownership.
Announcing the acquisition of the official handle of Uber Eats tweeted, We entered food delivery in India in 2017 and today is when our journey takes a different route. Zomato has acquired Uber Eats in India and we’ll no longer be available here with immediate effect. We wish all our users more good times with great food on the road ahead.
The founder and CEO of Zomato, Deepinder Goyal announced the acquisition of Uber Eats on Twitter. He wrote, Uber Eats India is now Zomato. Here’s to better food for more people, and new beginnings.
Currently, there were three key players in the food app space including Zomato, Swiggy and Uber Eats. Although Swiggy has been leading in most parts of India, Zomato with its new addition aims to take over the ruling brand.
Uber Eats barely managed to match up to its rivals in the market. While Zomato and Swiggy clocked around 2-2.5 million orders every day, Uber Eats could only manage 2,50,000-3,00,000 orders.
Uber, in a statement, revealed that they had been finding it difficult to sustain their food delivery business in India. However, India still remains a very important market for Uber and the company would focus on the ride business. “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. We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success, Uber CEO Dara Khosrowshahi said.
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