Zomato buys Uber’s Indian business, in return will give Uber 9.99% shares; Estimated value of such shares to be Rs 2500 crore
- Uber Eats’ restaurant partners, delivery partners and customers will shift to Jomato’s platform.
- Uber sold food delivery business in India due to losses, ride will remain in sharing.
- Uber reported loss of Rs 2197 crore in last 5 months.
NEW DELHI: Zomato has bought Uber Eats, Uber’s Indian business in food delivery. Uber will get 9.99% shares of Zomato under this stock deal. According to the valuation of Zomato, the value of such shares is estimated to be around Rs 2,500 crore. Uber Eats will shift restaurant partners, delivery partners and customers to Jomato’s platform on its app. The company gave this information on Tuesday. Uber decided to sell the food delivery business due to losses.
26000 restaurants listed on Uber’s platform, now shift to Zomato
Uber Eats was suffering due to competition from Jomato and Swiggy. The company had reported a loss of Rs 2,197 crore in the last 5 months. Uber started a food delivery business in India in 2017. Its platform lists 26,000 restaurants from 41 cities. On the other hand, information about 1.5 million restaurants in 24 countries is available on Zomato’s Restaurant Discovery and Food Delivery Platform. The company serves about 70 million users every month.
Zomata’s valuation to be over Rs 21300 crore
Zomato raised a new investment of $ 150 million (Rs 1065 crore) from its existing investor Ant Financial a few days ago. The investment was made by Ant Financial assuming a valuation of Zomato at $ 300 million (Rs 21,300 crore). Zomato CEO Deepinder Goyal says that we are proud to be the leader in the food delivery business in more than 500 cities of the country. Our position will be strengthened by purchasing Uber Eats.On the other hand, Uber CEO Dara Khosroshahi says that India is an important market, in view of the growth in the ride business here, will continue to invest. We are impressed with Zomato’s ability to move forward in an effective manner.
Uber Eats 25% share of Indian business in global losses
Uber Eats’ Indian business accounted for 3% of the company’s global business in the first three quarters of last year, according to news agency sources. But, Indian business accounted for 25 shares in losses. By selling food business, Uber can now move towards profit by focusing on ride sharing business.
