Zomato said it has acquired the Indian business of Uber Eats in an all-stock deal that will give Uber 9.99% 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, 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% on fully converted and diluted basis upon closing of the transaction. The deal comes days after Zomato had raised $150 million in funding from existing investor Ant Financial, an Alibaba affiliate, at a $3 billion valuation.
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.