MUMBAI: Uber Technologies Inc. has agreed to sell Uber Eats in India to Bangalore-based rival Zomato, as part of its move to drop loss-making businesses.
Uber will offload the business in return for 9.9% of the Indian startup, maintaining a foothold in one of the world’s fastest-growing internet arenas, according to the New York Times. Zomato, which is valued at $2.2 billion, has confirmed the sale in a blogpost on Tuesday but didn’t specify details of the transaction.
As per the deal, all delivery drivers for the service and basic information about customers, including their phone numbers and order history, will be transferred to Zomato. In addition, Uber’s app will send Indian users to Zomato for six months when they click on the “Get Food Delivery” button.
Swiggy and Zomato, backed by Jack Ma’s Ant Financial, now lead India’s food-delivery sector, which like elsewhere is showing signs of consolidation. Bangalore-based ANI Technologies Pvt, which owns the Ola ride-hailing brand, acquired the Indian unit of Foodpanda in December 2017 and also faces an uphill struggle against the two established players.
The two local food delivery leaders in India, Zomato and Swiggy, were already well established and together controlled about 80 percent of the food delivery market. Zomato said the deal will add Uber’s 10 million in monthly food orders to its own 40 million, giving it a slight edge over Swiggy. In particular, the acquisition will bolster Zomato’s position in southern India, Swiggy’s stronghold, the NY report said.
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