Zomato buys Uber Eats India; promises ‘better food for more people’

Online restaurant aggregator Zomato announced, on Wednesday, that it has acquired Uber Eats’ business in India starting today.

Zomato announced that it has acquired Uber’s food delivery business in India in an all-stock transaction, which gives Uber 9.99% ownership in Zomato.

ALSO READ: Zomato to raise up to ₹4,276 crores in new funding round: CEO Deepinder Goyal

Zomato’s founder and CEO Deepinder Goyal tweeted stating that Uber Eats India is now Zomato. Here’s to better food for more people, and new beginnings.

Uber Eats India also said on Twitter that it will no longer be available here with immediate effect.

“The competition in this space is going to continue to be intense, and the food delivery category is still very small compared to the overall foodservice market in India. This category will continue to grow and get built over the next couple of decades, as we work hand-in-hand with restaurants and foodservice providers to provide better food for more people,” said the blog post shared by Goyal.

“Through this deal, Uber Eats India users now become Zomato users. 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”, it added.

“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. 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. We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” said CEO of Uber Dara Khosrowshahi.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective today, the blog post added.

At an event in New Delhi last month, Zomato CEO Goyal had said that Zomato is going to raise USD 500-600 million in the next funding round.

Uber Eats entered India in 2017 and has about 26,000 restaurants from 41 cities. The delivery platform faced stiff competition from Zomato and Swiggy and incurred losses.

Uber Eats projected a loss of Rs 2,197 crore for the five months through December 2019, as per a report by KPMG affiliate BSR.

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