Zomato acquires Uber Eats in an all-stock transaction
After the acquisition, Uber will get a 9.99% stake in Zomato, according to Info Edge's regulatory filing
Restaurant aggregator and food delivery startup Zomato has acquired Uber Eats in an all-stock deal, according to media reports. The acquisition will reportedly allow Uber a 9.99 per cent stake in Zomato.
Info Edge, which has about a 23 per cent stake in Zomato, informed in a regulatory filing that Zomato Media Private Ltd. has signed a definitive agreement to acquire Uber’s food delivery business in an all-stock deal.
The deal will affect around 250 employees of Uber. But reports say that they will continue to be in the company's payroll till March 31. Uber will also make efforts to retain some of the employees, while helping others find jobs.
Effective today, Uber Eats will discontinue operations in India. It will direct restaurants, delivery partners and customers to the Zomato platform instead, according to the filing by Info Edge. The deal was reportedly signed at 3 am and all of Uber's customers will be shifted to Zomato at 7 am.
Media reports suggest that the deal is valued around $350 million.
Uber has also reached out to its customers via the app with a message: “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 will still get rides via the Uber app, which remains active and available. And you can still use Uber Eats if you are traveling outside India. Until then, we hope you will enjoy many more tasty moments and discover great restaurants around you on Zomato.”For more updates, be socially connected with us on
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