Indians on Tuesday, January 21, woke up to upheaval in the country’s food delivery scene. Headlines all across read: Zomato buys Uber Eats.
The deal, announced on Tuesday morning, essentially means Zomato now owns the india operations of Uber Eats. It was an all-stock transaction, which “gives Uber 9.99% ownership in Zomato.”
Uber started Uber Eats in 2017. If one goes by the numbers, Uber Eats got only 3 percent of its revenue from the India unit. The unit, however, also led to nearly 25 percent of Uber Eats’ global losses.
What they said
Zomato founder and CEO said in a statement about the deal: “We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India.”
He added: “This acquisition significantly strengthens our position in the category.”
Uber’s global CEO Dara Khosrowshahi also weighed in on the matter. He said: “Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication.”
Khosrowshahi added: “India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader.”
Zomato buys Uber Eats: What next?
Zomato said in a statement on Tuesday that Uber Eats India would discontinue operations “effective today.”
It added that the app would also “direct restaurants, delivery partners and users of the Uber Eats apps to the Zomato platform.”
Goyal said about the move: “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.”
He added: “Similarly, the delivery partners who were earlier associated with Uber Eats India will be on-boarded on our fleet.”
A question mark now hangs over the 100-odd employees of Uber Eats India. Uber will either absorb them or they may end up losing their jobs.