Zomato’s acquisition of Uber Eats India business is our deal of the month for February.
Indian online food delivery platform Zomato has acquired the country’s operations of Uber Eats in exchange for 9.99 percent of the Indian start-up.
This acquisition is aimed at cutting losses at the Uber’s food delivery business in India that has been a drag on the company’s earnings. For Zomato, the move will also help consolidate the market and puts it ahead of its arch-rival Swiggy. With the acquisition going through, Uber Eats will cease to exist as a separate brand locally and users on its platform will be redirected to Zomato’s app. The combined entity of Zomato and Uber Eats India is expected to corner more than a 50-55% market in terms of the number and value of orders.
The buyout results from Zomato’s latest fundraising led by existing investor Ant Financial, an Alibaba affiliate, which pumped in $150 million at a current $3 billion valuation.