The acquisition is the latest example of consolidation in the global food delivery market.
Food delivery company and restaurant aggregator Zomato on Tuesday said that it has acquired the online food delivery business of Uber Technologies, Inc in India, also known as Uber Eats.
The all-stock deal is likely to push Zomato to the top position in India's food delivery market, ahead of Swiggy. It had earlier been reported that Uber Eats was having a difficult time competing in India against its extremely popular rivals, Zomato and Swiggy.
However, the deal does not come without perks for the existing customers of Uber Eats. If you have ordered in the Uber Eats app after July 2019, give yourself a pat in the back, because you just became eligible for a fantastic offer as a result of this takeover - Straight 50% off on your next three orders in Zomato and a free subscription to Zomato Gold for the next three months.
If you are wondering how to avail the deal if you are a regular Uber Eats customer, here's how.
Step 1. You need to have the Uber Eats app installed. If you do not have the app, download and install it now.
Step 2. You also need to have the Zomato app installed and an account at Zomato.
Step 3. Launch the Uber Eats app. Once you have launched the Uber Eats app, you will be greeted with a screen which will inform you that the service has been taken over by Zomato.
Step 4. At the bottom of this screen, you will find an option that says 'Go to Zomato'.
Step 5. Click on this option. You will be redirected to the Zomato app. If you are redirected instead to the Google Play Store, do not worry. It just means that you have not updated the Zomato app. Update it, and return to the Uber Eats app to click on the 'Go to Zomato' option.
Step 6. After clicking the 'Go to Zomato' option and being redirected to the Zomato app, you will be greeted with a screen that informs you of the superb offers - Straight 50% off on your next three orders in Zomato and a free subscription to Zomato Gold for the next three months.
Step 7. Find the option 'Get Started' in the bottom. Click on it.
Step 8. Congratulations, you now have availed of the offers. Enjoy the benefits!
1. Uber Eats losing out to competition
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Uber has sold its online food-ordering business in India to local rival Zomato in exchange for a 9.99% stake in the startup backed by China`s Ant Financial, limiting its exposure to a crowded market where it has struggled to grow.
"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business," said Dara Khosrowshahi, Uber's chief executive officer.
Zomato said Uber Eats in India would discontinue operations and direct restaurants, delivery partners, and users to the Zomato platform, effective Tuesday.
The acquisition is the latest example of consolidation in the global food delivery market.
2. Zomato likely to lead food delivery market in India
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The all-stock deal is likely to push Zomato to the top position in India's food delivery market, ahead of Swiggy, which counts China's Tencent Holdings as an investor.
Zomato - valued at around $3 billion after raising money from Alibaba affiliate Ant this month - said Uber Eats in India will discontinue operations and direct restaurants, delivery partners and users to the Zomato platform from Tuesday.
Uber Eats, which also pulled out of South Korea earlier this year, said it will continue to operate in Bangladesh and Sri Lanka.
While this is the first large acquisition in the Indian online food delivery market, deal activity has been heating up globally.
