admin In a startling move by Uber, it sold Uber Eats to Zomato in an all-stock deal. As a result, we see the discontinuation of its services from this Tuesday and all its food deliveries will be directed to Zomato.
As a result of this deal, Uber gets a 9.99 per cent stake in the Indian food delivery segment and industry.
Dara Khosrowshahi, the CEO of Uber, was very positive about the deal.
He said, “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. 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.”
While speaking about the Zomato part of the deal, he added, “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 projected loss for August to December ’19 of $107.5 million. On the other hand, Zomato is trying to curb its loss too. After losing approximately $40 million each month for the major part of the year 2018, has tried to curb its loss to 20 million a month.
This acquisition is going to make Zomato a much bigger competition against its counterpart, Swiggy.
Asia is now the largest market for online Food Delivery services as it generated revenue of $45 billion in 2018. A report by Frost & Sullivan indicates that it is going to generate revenue of more than $100 billion in the year 2025.
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