Zomato announced on Tuesday that it has acquired Uber’s food delivery business in India in an all-stock deal and Uber will have a 9.99 percent stake in the food delivery platform led by Deepinder Goyal. Uber Eats in India will cease operations and direct restaurants, distribution partners and users of the Uber Eats app for the Zomato platform, effective from Tuesday.
According to sources close to the deal, the deal is in the range of around $ 350 million or Rs 2,500 crore.
Dipendra Goyal, Founder and CEO, Zomato said, “We are proud to be a leader in restaurant search and build a leading food delivery business in over 500 cities in India. This acquisition significantly strengthens our position in the category.”
Zomato announced on January 10 that it had acquired $ 150 million in new funding from Ant Financial, a subsidiary of Chinese giant Alibaba.
The latest round of funding at Zomato, which currently values the company at $ 3 billion, is part of a $ 600 million funding round announced by Zomato CEO Goyal at an event in Delhi in December.
Uber CEO Dara Khosroshahi said that the Uber Eats team in India has achieved an incredible amount in the last two years.
“India remains an important market for Uber and we will continue to invest to grow our local riding business, which is already a clear-class leader,” Khosroshahi said.
“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he said.
Uber started its food delivery service in India around mid-2017, but has not been able to grow it.