Zomato has acquired UberEats with an all-stock deal to claim the No.1 spot in the Indian food delivery market surpassing Swiggy.
Driving the movement of consolidation in the food delivery market in India, Zomato has grabbed the opportunity to acquire UberEats which is struggling to withstand the heavy competition. Swiggy which stood as a top food delivery player with 14 lakh deliveries daily, now slipped to the second spot.
Zomato with its own 12 lakh daily deliveries will be added with UberEats 4 lakh daily deliveries making the total as 16 lakh daily deliveries. This acquisition strengthens Zomato as UberEats restaurants, delivery partners and the Users will now be diverted to Zomato.
Though both the companies, Zomato and UberEats have not confirmed the worth of the stock-deal officially, it is estimated that approximately 2,485 crores might be its value according to the market sources. The cab-hailing form, Uber has now a stake of 9.9% stake in Zomato.
According to Zomato projections, the firm is likely to reach a $15 billion turnover by the year 2023. Founder and CEO of Zomato, Deepinder Goyal said –
We have acquired UberEats India and with this development, we are the undisputed market leaders in the food delivery category in India,
He also added,
Through this deal, UberEats India users now become Zomato users. I want to assure UberEats India users that their user experience won’t be compromised in any way,
Similarly, the delivery partners who were earlier associated with UberEats India will be on-boarded on our fleet,
Zomato’s acquisition of UberEats India has made the competition more tough for the Swiggy. Zomato after acquiring UberEats India has now a 50% share in the food delivery market.
Uber selling its UberEats to Zomato has also made it easy for the Zomato to win the competition with its tough rival Swiggy.