Bengaluru: Food delivery giant Zomato on Tuesday announced that it has acquired Uber’s online food delivery venture Uber Eats, in an all-stock deal. Uber will get a 9.9 per cent stake in Zomato as part of the deal, which was signed at 3 am.
As a result, Uber Eats will discontinue operations and direct restaurants, delivery partners and users to the Zomato app starting today.
In a statemet, Uber Eats said, ”We have announced today that Zomato has acquired Uber Eats in India. As such, you will no longer be able to order from Uber Eats in India, but you will be able to enjoy your favourite meals with exciting offers tailored for you on Zomato. You can still get rides via the Uber app, which remains active and available. And you can still use Uber Eats if you’re traveling outside India. Until then, we hope you will enjoy many more tasty moments and discover great restaurants around you on Zomato.”
In a tweet, Uber Eats India said, ”We wish all our users more good times with great food on the road ahead.”
According to sources close to the deal, the deal is in the range of nearly $350 million or Rs 2,500 crore.
“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,” said Deepinder Goyal, Founder and CEO, Zomato.
The deal comes days after Zomato had raised USD 150 million in funding from existing investor Ant Financial, an Alibaba affiliate, at a USD 3 billion valuation.
Dara Khosrowshahi, CEO of Uber, said that Uber Eats team in India has achieved an incredible amount over the last two years.
“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 Khosrowshahi.
(With Agency inputs)