Sunday, May, 22, 2022 07:59:25
Zomato all set to take over Uber’s food delivery platform UberEats
- UberEats is reportedly in talks of selling its food delivery platform to the rival food delivery application, Zomato by the end of 2019.
- The transaction value of the deal has not yet been finalized.
- This deal would help Uber reduce its global losses.
The food delivery industry is all set to witness a big chunk in India as the ride hailing application, Uber is all decked up to sell its food delivery business, UberEats to the rival application, Zomato. Apparently, this deal has been claimed to be locked by the end of this year enabling the American ride hailing giant to reduce its universal losses.
Reliable sources have reported that the deal, of late, values UberEats’ India business at over USD 400 million. Under the pact, Uber might invest somewhere around USD 150 million to USD 200 million in Zomato to acquire a sizable stake in a decade old Indian firm. However, no final claims have been made on the financial value of the deal yet.
It has been claimed that the finalization of the deal would mark the end of a year-long struggle for the UberEats which had been in long talks with Both Zomato and Prosus Ventures-powered by Swiggy to dissolve UberEats’ India business.
For the uninitiated, Uber launched its food delivery platform in India in 2017 meanwhile offering hefty discounts to its users. Despite this, the business did not pose a real threat to the food delivery partners, Zomato and Swiggy, both of which process over more than 1 million orders per day. On these grounds, UberEats’ daily volume of orders reached a mammoth of 600,000 — as is proclaimed by an official source.
The Uber chief executive Dara Khosrowshahi reportedly commented that the company would remain committed to India and despite the fact that it is facing an intense competition herein, it would continue to operate in the food delivery space.
The dissolution of UberEats India would help Uber minimize its global losses. The company this year, cut over hundreds of jobs this year ascribing to a quarterly loss of more than USD 1 billion in November.
Source credit: https://techcrunch.com/2019/12/15/ubereats-india-zomato/