Zomato, the food delivery company has acquired UberEats India in an all-stock deal value of Rs. 2500 crore. Moreover, this stock deal has let Uber get 10% stake in zomato.
As per the deal, the UberEat’s app in the country will no longer exist. The UberEats workers/executives will either be relocated in different Uber verticals or will be laid off because as per the latest information, Zomato is not recruiting the UberEats’ team into its workforce. Moreover, the users of the UberEat’s app will be redirected to Zomato’s application.
The UberEats users will be getting additional offers from zomato apart from 50% off on the first 3 orders. The food delivery app users will also get a free 3-month subscription to Zomato Gold.
With the food delivery companies like Zomato and Swiggy, the company like UberEats did not gain much popularity among Indian Customers. The deal between Zomato and UberEats India was already in progress for almost a year. The deal was helped by Zomato’s latest round of funding led by Alibaba-affiliate Ant Financial. They boosted Zomato with a $150 million funding, at a $3 billion valuation.
Now with Zomato’s acquisition of UberEats India, the company’s customer base in the food delivery market is expected to grow somewhere around 50 to 55%, which will make it an even bigger player in the filed.