Uber earns 9.99% stake in Zomato sells Uber Eats

Zomato declares that it has acquired Uber Eats in an all-stock deal and releases a 9.99% share in return to them.

The deal comes days after Zomato raised $150 million in funding from existing investor Ant Financial, an affiliate of Alibaba, after valuation of $3 billion.

Discussions were going on for months between Zomato and Uber. Uber Eats had been making losses in the face of stiff competition from Zomato and Swiggy.

Uber Eats in India will cease operations and guide restaurants, delivery partners, and users of the Uber Eats apps to the Zomato network, statement said effective Tuesday.

Though Uber still feels that the Indian market is one of the most important ones for them, they will continue to expand their local ride business.

Uber Eats, entered the Indian food discovery market in 2017, has some 25,000 restaurants from 40 cities on its platform.

On the other hand, Zomato Restaurant Discovery and Food Delivery Platform has information for over 1.5 million restaurants across 24 countries and serves more than 70 million users every month.

It seems Uber has played it smart even after incurring losses.