Recently launched food delivery service launched by ride sharing giant Uber, UberEats, finds itself in a bidding war with Zomato, established food delivery and reviews app to potentially acquire Runnr, a food delivery startup.
Runnr was formed after the merger of hyperlocal-logistics RoadRunnr and food-delivery venture TinyOwl. Runnr, while in the midst of discussions to raise 6-10 million funding with financial investors, is being propositioned at a value of $ 50 Million by UberEats, while Zomato has pegged its value at $ 30 Million. It has previously raised 47 crores from existing investors Nexus Venture Partners and Blume Ventures in September 2016.
Food startups in India are facing a tough competition with each other with an increase in a number of food delivery apps. Zomato works with third party delivery partners to fulfill deliveries while UberEats is seamlessly integrated with the Uber ride app. Acquisition of Runnr will only strengthen their services.
Zomato, Uber, and Runner are yet to confirm or deny these allegations.