Zomato announced on Tuesday that it has acquired Uber’s food delivery business in India in an all-stock transaction, which gives Uber 9.99% ownership in Zomato.
“Uber Eats India is now Zomato. Here’s to better food for more people, and new beginnings,” Zomato CEO Deepinder Goyal said.
“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,” Goyal added.
Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective today, a statement said.
“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 tweeted.
Dara Khosrowshahi, CEO of Uber said, “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. 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. We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success.”
Zomato is a restaurant review, restaurant discovery, food delivery and dining out transaction’s platform providing in-depth information for over 1.5 million restaurants across 24 countries and serves more than 70 million users every month, a statement said.