Zomato takes over Uber Eats in India
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Local food-delivery app Zomato has purchased Uber Eats in India.
“We are proud to have pioneered restaurant discovery and to have created a leading food-delivery business across more than 500 cities in India,” said Zomato CEO Deepinder Goyal. “This acquisition significantly strengthens our position in the category.”
The purchase was made via an all-stock transaction, which awards Uber 9.99 percent ownership of Zomato.
“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Uber Rides business, which is already the clear category leader,” said Uber CEO Dara Khosrowshahi. “We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success.”
Uber Eats in India has discontinued operations and is now directing restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform.
Questions & Answers
Q.How did Zomato pay for the acquisition of Uber Eats in India?
How did Zomato pay for the acquisition of Uber Eats in India?
Zomato completed the purchase of Uber Eats in India through an all-stock transaction. This arrangement resulted in Uber receiving 9.99 percent ownership of Zomato as part of the deal.
Q.What will happen to Uber Eats customers and partners in India after the acquisition?
What will happen to Uber Eats customers and partners in India after the acquisition?
Uber Eats in India has ceased its operations following the acquisition. All restaurants, delivery partners, and users of the Uber Eats app are now being directed to the Zomato platform instead.
Q.How does Uber plan to continue its business operations in India after selling Uber Eats?
How does Uber plan to continue its business operations in India after selling Uber Eats?
Uber will continue to invest in expanding its local Uber Rides business in India. The company sees India as a very important market and states its Uber Rides business is already the leader in its category.
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