Uber entered the food delivery business in 2017 when Swiggy and Zomato had already been in the food delivery business.
Zomato Buys Uber Eats
Food app company, Zomato acquires Uber Eats, the food delivery business run by Uber for Rs. 2,485 crore (around $350 million). Uber gets about 10% shareholding in Gurgaon-based Zomato, online food delivery, and restaurant discovery platform.
Uber Eats and Zomato, the new entity, is expected to capture the 50-55% market in the food delivery business. Zomato has created a leading food delivery business across more than 500 cities in India. The delivery partners who were associated with Uber Eats India will be onboarded on Zomato’s fleet.
Uber Eats employees will not be absorbed by Zomato. The employees may face lay-off or be absorbed in Uber’s other verticals.
New Beginnings and More Customers for Zomato
Uber Eats will not be a separate brand anymore locally and the customers from Uber Eats will be redirected to Zomato’s app. Zomato expects a 90% transition of UberEats users onto its platform. Zomato and Swiggy’s battle for Indian food delivery heats up.