Uber Agreement to Sell its Food delivery Business to Zomato

"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,” said Zomato founder and CEO Deepinder Goyal in a statement.

  • 21st Jan 2020

Uber has reached an agreement to sell its India food delivery business to Zomato in an all-stock deal by diluting a 9.99% stake to the San Francisco-based ride-hailing giant, the two companies said in a statement. The arrangement size is being pegged around $350 million, as online food conveyance turns into a two route fight among Zomato and Swiggy.

TOI was the first to report in quite a while November 25 edition that UberEats India is back on the square and Zomato is the leader to gain it. Uber isn't required to make an interest in Zomato as a piece of its continuous round quickly, nor will it get a board seat.

Under the terms of the deal, UberEats application will not be active in India and users will be directed to Zomato when they log in. Zomato will also get about 70,000 active delivery partners on the Ubereats network as a part of the deal besides restaurants. About 200 Uber Eats India employees will be impacted by this deal, as Zomato is not absorbing them. While some employees will be absorbed in Uber’s ride-hailing business, others are being given outplacement services, said one of the sources briefed on the deal.

"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,” said Zomato founder and CEO Deepinder Goyal in a statement.

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