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Zomato acquires Uber Eats for Rs 2,485 crore

Zomato acquires Uber Eats

After cab-hailing giant Uber sold off its loss-making Uber Eats in India to Zomato, its CEO and co-founder Deepinder Goyal informed that the deal was a strategic investment in order to grow in cities where Zomato did not have deep penetration.

In an interview to Economic Times, Goyal reiterated that it was more about just this acquisition as they were preparing to latch on to Uber Eats being the first or the second spot in many southern Indian cities.

“The idea is to only improve the quality of our business and Uber Eats was a step in that direction. It was not about buying a number three player, but buying a number one or number two is some cities where we were lagging behind,” Goyal said.

Explaining the deal:

With this deal, Zomato is expecting to get 80% of Uber Eats’ business and as per Goyal, it would represent a 20% rise in monthly active users and also a 25% increase in orders. Zomato has given away 10% stake to Uber as a part of the deal, but then Goyal maintains that it was “win-win” deal since Zomato is getting an increase of 20%.

Now with this deal, Zomato has become the largest player in the food delivery market. Now, Uber Eats was at a distant third spot, but now with Zomato, they have enough leverage over its archrival Swiggy.

“Our average value is higher than competition’s and our discounts are lower, so the quality of business is better, overall. We have actually not focused on the competitive side of things for a long period of time. The idea is to only improve the quality of our business and Uber Eats was a step in that direction. It was not about buying a number three player, but buying a number one or number two is some cities where we were lagging behind,” Goyal added.

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