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Online food delivery and restaurant review platform Zomato has recently acquired Uber Eats, the food delivery handle of Uber India following an all-stock deal of around Rs 2,485 crore or $350 million. Uber is left with 10 per-cent shares where Zomato now has 90 per-cent stakes in the company. Uber Eats will be dissolved and won’t exist as a standalone Uber brand in India and all its customers will now be redirected to the Zomato app for placing orders. This deal will help Zomato to boost its business in India and to get ahead of its main competitor Swiggy which has a stronghold in the southern states. Zomato and Uber Eats combined, captures around 50-55 per cent market share and this would certainly help Zomato to beat Swiggy in the food delivery competition. Zomato has come up with a statement which read, "With our expansion to 550+ cities over the last year, our continued focus on user experience and our commitment to operating excellence, we have demonstrated our ability to execute on a variety of parameters". Deepinder Goyal, founder of Zomato said, "I want to assure Uber Eats India users that their user experience won't be compromised in any way - if at all, the scale gives us higher density to make our deliveries faster. With Zomato, you'll realise that we share a common love for great food". Dara Khosrowshahi, CEO of Uber said, "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". However, Zomato has reported that it won’t absorb Uber Eat employees which mean a lot of Uber Eats employees could face lay-off.
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 pic.twitter.com/WEbJNaJY8M
— Uber Eats India (@UberEats_IND) January 21, 2020
