Uber Sold its Food Delivery Business in India to Zomato

Uber Sold its Food Delivery Business in India to Zomato

Business

On Tuesday, Uber announced the procurement of Uber Eats in India to another food delivery business Zomato. Notably, it is an all-stock deal. Uber Eats has signed the agreement at 3 a.m., and users registered on its app will be integrated into Zomato’s app from 7 a.m. The latest effort will offer a 9.9% stake to Uber in Zomato’s business. According to sources familiar with the matter, Uber Eats India business’ valued between $300-350 million. Well, both companies have not yet revealed the size of the deal. Reportedly, both companies were engaged in advanced-level discussions for a deal in the previous month. Through the latest procurement, Uber aims to cut down on unprofitable operations globally.

On the other hand, the deal will impose a massive impact on 245 employees of Uber Eats. Besides this, some sources from Uber India have reported that they will remain in the payrolls up to 31st March. Meanwhile, Uber is doing its utmost to take in some of the workers and offer support to the remaining in job seeking. As the deal applies in India, so Uber Eats will carry on it’s functioning in Sri Lanka and Bangladesh. Dara Khosrowshahi, Uber’s CEO, noted Uber Eats team in India had attained a remarkable amount throughout the past two years. He added India remains a remarkably significant market to Uber, and they will continue to spend in developing their local Rides business. Khosrowshahi also said that Zomato’s potential of growing fast in a money-effective manner had impressed them. He has even wished Zomato for sustained success.

Deepinder Goyal, Zomato’s CEO, said they are honored to have leading restaurant discovery and to have developed a prominent food delivery business across over 500 cities in India. The executive also noted that the deal considerably reinforces their position in the sector. Whereas, analysts have assessed that Uber lags when it comes to lead the Indian market. Ola, another ride-hailing company, processes double rides than Uber and offers service in over 100 cities.

Arya Green

Arya, our senior correspondent for business updates, have worked in the industry for more than a decade as an executive and in other roles. Right now, she focuses on covering business updates that matter to not just the commons but also professionals like investors. She is a great lover of books and is planning on writing the ultimate guide on business analytics.

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