‘Together is better’: Local food delivery giant Zomato buys Uber Eats’ business in India
Uber has sold its food delivery service in India to local rival Zomato in hopes of cutting losses amid stiff competition for the South Asian market.
Uber will now own 9.99 percent of Zomato, while users of the Uber Eats apps and delivery partners will be redirected to Zomato’s platform, the companies announced on Tuesday.
Local media, citing sources, says the deal is valued from $300 to 350 million. The San Francisco-based company launched its food delivery service in India in 2017 but has been making losses in stiff competition with Zomato and its rival Swiggy.
Founded as a start-up in 2008, Zomato currently operates in more than 500 cities in India and serves over 70 million customers per month.
“This acquisition significantly strengthens our position in the [food delivery] category,” Zomato founder and CEO Deepinder Goyal said, as he tweeted the slogan of the purchase: “Together is better.”
“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,” Uber CEO Dara Khosrowshahi said.
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