After telecom and e-commerce, there is a possibility of a war of dominance in the online food delivery sector. Actually, Zomato, a company that facilitates online food delivery, has bought Uber Eats India. This bet will expand Zomato, which may increase the challenge of other competing food delivery company Swiggy and Food Panda.
Stock Deal
Zomato has acquired the Indian business of Uber Eats. The deal is based solely on shares. According to news agency PTI, Uber will get 9.99 percent stake in Zomato under the deal. Zomato said in a statement that Uber Eats will stop its operations in India. In addition, Uber Eats restaurants, supply partners and customers of Uber Eats are being connected to the Zomato platform. It is being implemented today i.e. Tuesday (January 21).
Zomato Chief Executive Officer (CEO) Deepinder Goyal said, "We are proud to build an online food delivery business in over 500 cities in India. This acquisition will strengthen our position in this category." Dara Khosrowshahi said in the statement, "India remains an important market for Uber and we will continue to invest in our travel (cab service) business. We are looking at Zomato Htr are increasingly affected by the ability to proceed with the capital management and hope that he will continue to succeed."
Let us tell you that the conversation between Zomato and Uber Eats was going on for months. Uber Eats was facing losses in the fierce competition from Zomato and Swiggy. Currently, Uber Eats has 26,000 restaurants in 41 cities. It started operations in India in 2017.
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