Zomato will not absorb Uber Eats' team in India. This means around 100 executives will either be reallocated to Uber's other verticals here or laid off.
Uber Eats which was launched in 2017 in India, had about 26,000 restaurant partners and garnered about 12% of the market, sources said. It was competing with Zomato as well as Swiggy in the segment. The deal comes close on the heels of Zomato raising $150 million in funding from existing investor Ant Financial, an Alibaba affiliate, at a $3 billion valuation.
Sources said that with the sale of the food business, Uber would now focus on its rides business and expansion to tier 2 cities.
Market experts said that this acquisition marks the first big consolidation move in the highly competitive online food delivery mraket, led by Swiggy and Zomato. With this acquisition, Zomato will turn number one in the market and its total market share in India will go up to 50-55 percent, say analysts.