Zomato on Tuesday announced it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 percent stake in Deepinder Goyal-led food delivery platform. Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.
According to sources close to the deal, the deal is in the range of nearly $350 million or Rs 2,500 crores.
“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, Zomato.
Zomato on January 10 announced it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.
The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event in December.
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 local Rides business, which is already the clear category leader,” said Khosrowshahi.
“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.
Uber started its food delivery service in India around mid-2017 but has not been able to scale it up.