Zomato acquires Uber Eats for around $350 million in an all-stock transaction

Zomato has bought the Indian operations of Uber Eats.  Uber will get 9.99% shares of Zomato under this stock deal.  According to the valuation of Zomato, the value of such shares ($ 350 million) is estimated to be around Rs 2,500 crore. Uber Eats will shift restaurant partners, delivery partners and customers to Zomato’s platform on its app. The company gave this information on Tuesday. Uber decided to sell the food delivery business due to losses.

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

26000 restaurants listed on Uber’s platform, now shift to Zomato

Uber Eats was suffering losses due to tough competition from Zomato and Swiggy. The company had reported a loss of Rs 2,197 crore in the last 5 months. Uber started a food delivery business in India in 2017. Its platform lists 26,000 restaurants from 41 cities. On the other hand, information about 1.5 million restaurants in 24 countries is available on Zomato’s Restaurant Discovery and Food Delivery Platform. The company serves about 70 million users every month.

Zomata’s valuation to be over Rs 21300 crore

Zomato raised a new investment of $ 150 million (Rs 1065 crore) from its existing investor Ant Financial, an Alibaba affiliate a few days ago. The investment was made by Ant Financial, valuing Zomato at $ 300 million (Rs 21,300 crore). Zomato CEO Deepinder Goyal says that we are proud to be a leader in the food delivery business in more than 500 cities of the country. Our position will be strengthened by purchasing Uber Eats. On the other hand, Uber CEO Dara Khosroshahi says that India is an important market, in view of the growth in the ride business here, will continue to invest. We are impressed with Zomato’s ability to move forward in an effective manner.