Indian restaurant aggregator and food delivery start up, Zomato has acquired Uber’s food delivery business, Uber Eats, in India in an all-stock deal.
Informing the decision, Zomato CEO Deepinder Goyal, who is also the founder of the company, wrote on Twitter: “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.”
While the two companies did not share the deal size, sources said it was pegged at about $300-350 million (around Rs 2,485 crore). The deal will give Uber 9.99% ownership in Zomato. Following the acquisition, Uber Eats will cease to exist as a separate brand locally and users on its platform will be redirected to Zomato's app from Tuesday.
Revealing Uber’s future plan of zeroing in on local rides business, CEO of Uber, Dara Khosrowshahi said: “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”.