Bengaluru: In a business deal that was signed at 3 am on Tuesday, food delivery giant Zomato acquired Uber’s online food delivery venture Uber Eats, in an all-stock sale.
As a result, Uber Eats will discontinue operations and direct all its restaurants, delivery partners and users to the Zomato app starting today.
The news, which came early on Tuesday morning, surprised many while some others expressed disappointment at the merger of Zomato and Uber. Not many seemed happy and opined that the service of Uber Eats was not only better than Zomato, but also cheaper.
Here’s how people reacted to the development:
Many also poked fun at rival food delivery platform Swiggy, anticipating a more competitive environment post the deal. Interestingly, Swiggy also had plans to buy Uber Eats and the two companies had entered negotiations last year, but to no avail.
In a statemet, Uber Eats on Tuesady 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.”
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.