Zomato acquires Uber's food delivery business in an all-stock deal

WION Web Team New Delhi, Delhi, India Jan 21, 2020, 08.00 AM(IST)

Uber Eats Photograph:( Reuters )

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Under the deal, Uber Eats’s India business will be transferred to Zomato in exchange for at around $350 million, according to the news reports. 

Food delivery giant Zomato has acquired Uber's online food delivery venture Uber Eats in India on Tuesday.

Zomato has purchased this app in an all-stock deal, which will give the Uber a 10% stake in the company.

Under the deal, Uber Eats’s India business will be transferred to Zomato in exchange for at around $350 million, according to the news reports. 

The share-swap arrangement and details of the transaction were not disclosed.

In a mailed statement to its customers, Uber Eats said that Zomato has acquired its business in India and Uber Eats would discontinue operations and direct restaurants, delivery partners, and users to the Zomato platform, effective Tuesday. 

"We have announced today that Zomato has acquired Uber Eats in India. As such, you will no longer be able to order from Uber Eats in India, but you will be able to enjoy your favourite meals with exciting offers tailored for you on Zomato. You can still get rides via the Uber app, which remains active and available. And you can still use Uber Eats if you're travelling outside India. Until then, we hope you will enjoy many more tasty moments and discover great restaurants around you on Zomato," said the statement.