Uber will get a 9.99% stake within the Indian start-up, helping it maintain its presence within the sector. All Uber Eats customers in India will now be redirected to Zomato but it’s unclear if the acquisition will cause lay-offs.
The deal is probably going to allow Zomato a position over its rival Swiggy in a very fast-growing but fiercely-contested sector. Zomato operates in additional than 500 cities in India and also the firm believes that the acquisition will further consolidate its presence. Uber Eats launched in India in 2017 with a promise to revolutionize the world.
The San Francisco-based company has since been trying to extend its customer base but faced tough competition from Zomato and Swiggy. Food delivery services is now an integral part in the daily life of all the people in India. Corporate professionals have faith in aggregators to deliver their lunch at work each day – restaurants and kitchens are able to expand their customer base considerably as a result and tens of innumerable people across the country became habituated to getting their favourite meal delivered on to their doorstep each and every day.
With a cab aggregator service already firmly established within the country, and an outsized population, Uber’s entry into the Indian food delivery market was a no brainer. But the parent company was fraught to scale back loss-making businesses since going public last May, and Uber Eats was bleeding money. This is often the newest sale for Uber after it exited businesses in Russia, China and geographical area in recent years.