Zomato acquires Uber Eats in an all-stocks deal for $350 million
As a part of the deal, Uber will get around 10% stake in the Gurugram-based food delivery app and Uber Eats will cease to exist as a separate entity.
Zomato has acquired Uber Eats in an all-stocks deal. As per reports, the deal is valued at about $350 million (₹2,500 crore approximately).
As a part of the deal, Uber will get around 10% stake in the Gurugram-based food delivery app and Uber Eats will cease to exist as a separate entity. In addition to that, all of Uber Eats' customers will be directed to Zomato.
According to a report by The Economic Times, Zomato will not be absorbing Uber Eats' executives working in India. The Uber Eats' team which comprises of about 100 executives will either be laid off or assigned to separate verticals within Uber. Uber, however, will continue to operate its cab-hailing service in India wherein it competes with rival, Ola.
"We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category," Deepinder Goyal, Founder and CEO of Zomato said in a statement to IANS.
"We entered food delivery in India in 2017 and today is when our journey takes a different route. Zomato has acquired Uber Eats in India and we'll no longer be available here with immediate effect. We wish all our users more good times with great food on the road ahead," Uber Eats India wrote on its official Twitter handle.