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.
A report suggests that the deal value is estimated at around $350 million or approximately Rs 2,492 crore. According to the deal, the Uber Eats app would discontinue in India and its users will be redirected to Zomato when they log in. Besides restaurants, Zomato will get 70,000 active delivery partners as the deal says. On the other hand, 200 Uber Eats India employees will not be absorbed by the company and will be placed in the ride hailing business or outplaced services.
With the acquisition going through, the combined entity of Zomato and Uber Eats India is expected to corner more than a 50-55% market in terms of the number and value of orders, pulling it ahead of Swiggy.