Uber has sold its Food Delivery business in India, after facing loss in the business of Uber Eats. Zomato acquired this business in the exchange of 9.99% of the stakes from the startup. Zomato raised fundings from Ant recently & It is currently valued at $3 Billion. The company has just provided the information on all its platforms including the Uber Eats app as well.
Consumers were able to see a message that said, “Uber Eats acquired by Zomato. Order from Zomato to get exciting offers from your favorite restaurants. If you have ordered from Uber Eats in India since July 1, 2019, your account is now set up at Zomato.” Zomato will take charge of Uber backed food delivery service from Thursday. Although The orders made after July 1, 2019, have been a part of Zomato themselves.
These Food delivery services have really given a lot of discounts, coupons & offers to the consumers. Due to this, Some of them had to struggle a lot, including Uber Eats. Zomato and Swiggy were the game-changers. These companies have made their place in the food market of India. With a couple of investments/fundings, These are operational in good condition in India.
Uber CFO Nelson Chai said that the move was another demonstration, after exiting Uber Eats in South Korea as well in October 2019. According to the sources, Uber tried to have a deal with Swiggy before, but could not come to a conclusion. Uber Eats business in India reported a loss of $61 Million for three months on revenue of $20 Million. On the other hand, Zomato made a loss of $294 Million until March 2019. And, Swiggy reported the $330 Million loss last year.
This deal will help Uber to focus more on the main business, Cabs in India. With the help of this deal, It will allow Uber to be in the market. Zomato could be beneficial with this deal, as the company was able to capture the market owned by Uber Eats in the Southern part of India. Along with that, Zomato got a wide range of restaurants that were not available on the platform before.
In a blog, Zomato founder said ” 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.”
Zomato founder and CEO Depinder Goyal added that they are focusing on their dining out business Zomato Gold along with the food delivery business in India. Also, Zomato’s mission is better food for more people. Zomato’s Founder & CEO welcomed Uber Eats to their portfolio today.
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