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Online Food Delivery Platform Zomato Acquires Uber Eats
Uber Eats, the online food delivery business owned by Uber, has been in the news for quite some time, saying it will cease operations due to losses from the business. Swiggy, which is one of the leading online food delivery startups in India, had its eyes on acquiring Uber Eats. However, the deal could not fall through due to disagreements about the financial terms and taxation clauses.
The Indian public was in for a surprise when Zomato announced they will acquire Uber Eats in an all stock deal for $ 350 million. This is one of the biggest acquisitions of this year. The Uber Eats app ceased operations and instead shows you a notice which redirects you to the Zomato platform.
Uber Eats posted on their official Twitter handle regarding the news about the acquisition.
We entered food delivery in India in 2017 and today is when our journey takes a different route. Zomato has acquired Uber Eats in India and we’ll no longer be available here with immediate effect. We wish all our users more good times with great food on the road ahead pic.twitter.com/WEbJNaJY8M
— Uber Eats India (@UberEats_IND) January 21, 2020
This deal now gives Zomato a 55 % control of the market, which it now shares with its competitor, Swiggy. The online food delivery market has been very difficult for Uber Eats to make inroads as it was already captured by Swiggy and Zomato. The deal excludes Uber Eats’ employees as Zomato stated they will not take them. Uber will absorb these employees and allocate them other business roles.
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