- Uber nows owns a 9.99 percent stake in India restaurent aggregator and food delievery start-up Zomato.
- As per this all stock dealUber Eats will discontinue its operations across 41 cities in India.
- The deal was signed at 3 AM and all Uber Eats customers will be shifted to Zomato by 7AM as per reports.
In a not so suprising move Uber Eats has shelved off its operation as a food delievery service. It was earlier reported that Uber is trying to exit this business and was looking for a sell out.
Finally it has stuck a deal with Zomato and will handover its business to them.
The deal gives Uber a 9.99 percent stake in Alibaba affiliate Ant Financial backed Zomato which has recently invested $150 million at a valuation of $3 billion as per finlings by Info Edge.
Also as per some other reports this deal is expected to be of value of $350 billion.
In a blog post by Zomato CEO Deepinder Goyal share earlier today
We have acquired Uber Eats India and with this development, we are the undisputed market leaders in the food delivery category in India.https://www.zomato.com/blog/uber-eats-india
What it means for Customers ?
As per the blog post all Uber Eats customers become Zomato customers and their CEO seems to be reassuring them about their user experience and capability to handle the scale on their platform
What it means for Delivery partners ?
The delivery partners who were part of Uber Eats will now become part of Zomato and here also the CEO welcomes them by saying
We welcome them and want to assure them we have their best interest in mind.CEO Deepinder Goyal on Uber Eats delivery partners
“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,” CEO Dara Khosrowshahi said in a statement.
Well we are no business experts but this deal is sure to cut some slack off Uber which is trying to turn profitable after it reported a loss of $5.2 billion in second quarter of 2019 followed by layoffs.
Also it means that Zomato will now have stronger teeth in market against its rivals like Swiggy.
The Tech Conversations hope this brings newer jobs , faster delivery and lower delivery charges 😉 Is Any body at Zomato listening ?
About Zomato: Zomato is a restaurant review, restaurant discovery, food delivery and dining out transactions platform providing in-depth information for over 1.5 million restaurants across 24 countries and serves more than 70 million users every month.
About Uber: Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 15 billion trips later, we’re building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.