Zomato Acquires Uber Eats Business in India

Zomato on Tuesday said it has acquired the Indian business of Uber Eats in an all-stock deal that will give Uber 9.99 per cent stake in the Indian food delivery and restaurant discovery platform.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective Tuesday, a statement said.

In a regulatory filing to BSE, Info Edge (India) - a shareholder in Zomato - said its shareholding in Zomato will stand reduced to about 22.71 per cent on fully converted and diluted basis upon closing of the transaction.

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

"We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category," Zomato CEO Deepinder Goyal said.

Uber Eats, which entered India in 2017, has about 26,000 restuarants listed on its platform from 41 cities.

Zomato's 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.

Discussions between Zomato and Uber have been on for months. Facing stiff competition from Zomato and Swiggy, Uber Eats had been making losses.

Uber had projected an operating loss of Rs 2,197 crore in its food delivery business for the five months through December 2019, according to a valuation report prepared by KPMG affiliate BSR and was part of regulatory filings.

According to sources, Uber Eats India business contributed three per cent of the global gross bookings but accounted for over 25 per cent of adjusted EBIDTA losses for the first three quarters of 2019.

With the sale of the food business in India, Uber can now focus on the rides business and driving it towards profitability, one of the persons said.

"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader. We have been very impressed by Zomato's ability to grow rapidly in a capital-efficient manner and we wish them continued success," Dara Khosrowshahi, CEO of Uber, said in the statement. PTI SR

Swiggy to Acquire Uber Eats' India Business worth $330 Mn

Uber Eats, the food delivery business of cab hailing firm Uber, was launched nearly two years ago in India, however established local brands like Zomato and Swiggy have not allowed Uber to make its own space among the Indian customers and now, according to ET report, Uber's food delivery business 'UberEats' is all set make a tactical exit by selling its India business worth $330 million to its local rival Swiggy.

Uber is selling its food business of India in order to push down its losses and help the company go for IPO with targeted valuation.

The acquisition is likely to be a share swap i.e. -- Uber would pay with stocks rather than with cash -- giving Uber around 10% stake in Swiggy, which was last valued at $3.3 billion.

In March last year, Uber did exactly the same when its exited its transport and food delivery businesses by selling it to deal with Singapore-based Grab. Uber closed that deal in exchange for a 27.5% in Grab .

Touted as a major revenue generator for Uber,  Uber Eats was reported to be valued at over $20 billion and grossed $1.5 billion in sales in the first quarter of 2018 alone.

Expected to close by March, the acquisition -- if happens -- will be Swiggy's largest acquisition till date, and Uber's first divestment of its food business globally.

Uber's move to sell its business in one of Asian countries is in line with it's global strategy to cut down on losses as it prepares for a public offering (IPO) at a possible valuation of $120-150 billion.

Notably, Uber Eats had also held discussions with Zomato, but those talks fell through, said the ET report.

It may noteworthy that Swiggy's last fund-raise, which made it to valued at $3.3 billion, was led by Naspers including new backers Tencent and Coatue and Coatue is an investor in Uber too.

Coatue is a technology sector hedge fund that invests in public and private equity markets. It is led by Philippe Laffont, who founded the hedge fund after leaving Tiger Management in 1999.

This month, Swiggy acqui-hired Kint.io, a Bangalore-based
Artificial Intelligence (AI) startup, for an undisclosed amount. Kint.io, which was Swiggy's third acquisition, applies deep learning and computer vision for object recognition in video.

UberEats Reportedly Held Talks with Swiggy for Acquisition

UberEATS, the food delivery unit of Uber, had held talks with Nasper-backed Indian food delivery startup, Swiggy, a few months ago, reported Axios. However, the acquisition could not materialize and now Swiggy is reportedly closing a fresh funding round from Chinese investor and WeChat owner Tencent.

An another report by Bloomberg has suggested that Uber is in early talks to buy UK-based food-delivery company Deliveroo for several billion dollars. Deliveroo is an Unicorn food delivery startup based out of London and is UK's biggest online food delivery firm valued at $1.1 billion.

In January this year, the Deliveroo was said to be entering Indian market though no substabtial development happened since then. The company was said to be in the process of hiring a country head along with setting up a full-fledged team in India.

It is to be noted that in this year, UberEats has made two acquisitions and both in the US. In May UberEats acquired Texas-based orderTalk, which offers online ordering software and call center solutions for the restaurant and hospitality industries. This was followed by acquisition of New York-based restaurant, Ando, that offers delivery services to its users.

In India, UberEats is said to be recording 50% month-on-month growth in May on the back of aggressive promotional pricing.

About Swiggy, the Bangalore-based food delivery startup Swiggy has reportedly been in talks with couple of investors including China's Tencent and Japan’s SoftBank, since November. This year alone, Swiggy has raise a handsome $310 million from two different rounds of $210 Mn in June and $100 Mn in February, which was led by Naspers and DST Global (June).

Notably, both Swiggy and Deliveroo have DST Global as a common investor. Deliveroo has raised a total of about $860 Mn in funding over six rounds with last funding came from a Series F round in September, 2017.

In August, Sriharsha Majety, CEO & co-founder of Swiggy, has said that the company is experimenting with few hyperlocal categories, which is among several new initiatives that the India’s largest online food ordering startup has planned for going beyond just food ordering and delivering.

[Top Image - UberEATS India@Twitter]

UberEATS Introducing ‘Cash on Delivery’ Support in Mumbai, Plans to Launch Globally

Since launching UberEATS in India four months ago, Mumbaikars have shown a ferocious appetite for the ease and convenience of food delivery at the push of a button. That's why the company is excited for more people to tap into this same convenience by introducing cash as an additional payment option for UberEATS in Mumbai.

Just as with Uber rides, the firm has built this feature for India first. It will eventually expand the option to some of the other 29 countries where UberEATS is available today.

For Uber riders who use cash, this means you can get a bite as easily as you can get a ride, using the same account for the two apps. For restaurants and delivery partners, cash expands access to UberEATS, allowing Mumbai’s food-makers to grow their businesses and reach more of their customers.



Cash remains popular in India, but the company is also committed to supporting India’s vision for a digital economy. It is integrating Unified Payment Interface (UPI) as the collection method for delivery partners to deposit the cash they collect, taking the hassle out of cash collection and encouraging digital banking.

After launching with 200 pioneering restaurants partners just a few months ago, consumers, restaurants, and delivery partners have embraced UberEATS. Today, there are over 950 Mumbai restaurants opening their doors on UberEATS every day. As it has expanded to Bengaluru and New Delhi, consumers are discovering some classic dishes, with North Indian food topping the charts as the most popular food, as well as showcasing India’s diversity of taste with Chinese food as the second favorite cuisine.

More and more Indians are incorporating Uber in their daily lives, whether it’s to get a ride across town, expand the reach of their restaurants or earn extra money by driving their cars or making deliveries on scooters. The company is thrilled to bridge the use of cash with the ease of the UberEATS app and look forward to rolling out cash payments starting over the next few weeks in Mumbai.

“We are constantly innovating to grow the business and serve more people. With the introduction of cash payments on UberEATS in Mumbai, we’re excited that India is once again the first country in the world where we are today launching this new global feature. An additional payment method not only gives consumers more flexibility, it also helps our restaurant partners expand their reach, while enabling many more food lovers in the city experience the magic of 'food and technology' through the UberEATS app," said Bhavik Rathod, Head, UberEATS India.

UberEATS Introducing ‘Cash on Delivery’ Support in Mumbai, Plans to Launch Globally

Since launching UberEATS in India four months ago, Mumbaikars have shown a ferocious appetite for the ease and convenience of food delivery at the push of a button. That's why the company is excited for more people to tap into this same convenience by introducing cash as an additional payment option for UberEATS in Mumbai.

Just as with Uber rides, the firm has built this feature for India first. It will eventually expand the option to some of the other 29 countries where UberEATS is available today.

For Uber riders who use cash, this means you can get a bite as easily as you can get a ride, using the same account for the two apps. For restaurants and delivery partners, cash expands access to UberEATS, allowing Mumbai’s food-makers to grow their businesses and reach more of their customers.



Cash remains popular in India, but the company is also committed to supporting India’s vision for a digital economy. It is integrating Unified Payment Interface (UPI) as the collection method for delivery partners to deposit the cash they collect, taking the hassle out of cash collection and encouraging digital banking.

After launching with 200 pioneering restaurants partners just a few months ago, consumers, restaurants, and delivery partners have embraced UberEATS. Today, there are over 950 Mumbai restaurants opening their doors on UberEATS every day. As it has expanded to Bengaluru and New Delhi, consumers are discovering some classic dishes, with North Indian food topping the charts as the most popular food, as well as showcasing India’s diversity of taste with Chinese food as the second favorite cuisine.

More and more Indians are incorporating Uber in their daily lives, whether it’s to get a ride across town, expand the reach of their restaurants or earn extra money by driving their cars or making deliveries on scooters. The company is thrilled to bridge the use of cash with the ease of the UberEATS app and look forward to rolling out cash payments starting over the next few weeks in Mumbai.

“We are constantly innovating to grow the business and serve more people. With the introduction of cash payments on UberEATS in Mumbai, we’re excited that India is once again the first country in the world where we are today launching this new global feature. An additional payment method not only gives consumers more flexibility, it also helps our restaurant partners expand their reach, while enabling many more food lovers in the city experience the magic of 'food and technology' through the UberEATS app," said Bhavik Rathod, Head, UberEATS India.

Uber Launches UberEATS in Delhi, NCR; Commences Service in Gurugram

Connecting people to the food they love, Uber, the technology company that is transforming mobility across the world, today launched the UberEATS service to Delhi, NCR starting with Gurugram. Partnering with over 300 restaurants, consumers can now order their favorite food at the tap of a button. To successfully scale the business across the region, Faiz Abdulla has been appointed as the General Manager for UberEATS in Delhi.

Commenting on the launch, Bhavik Rathod, Head of UberEATS India, said “UberEATS has received an overwhelming response from Mumbaikars and we recently expanded operations to serve entire city. As a step further in our global expansion strategy, we aim to open up the diverse range of culinary experiences and cuisines to Delhiites at the push of a button. Our goal is to offer people what they want to eat, when they want to eat, in the quickest time possible. The ease and reliability of Uber’s technology is making this a reality.”

UberEATS will give local restaurants in Delhi, NCR a reliable delivery option, effectively expanding their capacity and reach to be able to service a whole new network of potential customers. In addition to that, hundreds of delivery partners in the region will now also have access to more flexible earning opportunities.

“Delhi, well known for its love for North Indian and international cuisines, has a vibrant food culture, and UberEATS will offer Delhiites an effortless way to order food. We are excited about going live in Gurugram today and aim to expand the service area to New Delhi and other parts of the National Capital Region soon,” said Faiz Abdulla, General Manager for UberEATS Delhi.

Faiz joined Uber in April 2017 as the General Manager for UberEATS. In this role, he will be focussing on driving value for restaurant and courier partners and providing an exceptional experience to the customers. An entrepreneur at heart, Faiz comes with immense experience in the F&B space. He co-founded Silicon Galli, a Mumbai-based organization which is dedicated to building innovative, profitable & sustainable global businesses and The Funky Kitchen Company. He has also launched two food brands in Mumbai - a QSR chain and a luxury ice-cream brand.

UberEATS was started in 2014 as a small delivery pilot in Los Angeles and launched as a separate application in Toronto in December 2015. In the past 18 months, it has grown incredibly fast, and is now a stand-alone app available in 27 countries and in 97 cities around the globe, including India.

The UberEATS app is separate to the Uber app people use to request a ride and has been built specifically to make food delivery as seamless as possible. Starting today, consumers can download the new app for iOS and Android from the iTunes/Google play store or go online at ubereats.com.

Getting started with UberEATS is easy.

1. Download the app

2. Pick delivery location - Input your address where you’d like your meal delivered

3. Find the perfect meal - Browse local restaurants or search by cuisine type, and sort according to price, dietary needs, and speed to find exactly what your taste buds are asking for

4. Place your order - Pick the items you want right now or schedule your order to the arrive whenever is most convenient for you

5. Pay through PayTM - OPayTM will make it easy for you to pay for your meals

6. Track the progress of the delivery - Get updates as your order is prepared and watch in realtime as the meals is delivered to your destination