Zomato in Advanced Talks to Buy UberEats in India: Report
The online food delivery industry in India is set for consolidation as Uber is reportedly in advanced stages of negotiations to sell the India operation of UberEats to rival Zomato. According to a TechCrunch report on Monday, the deal “currently values UberEats’ India business at around $400 million”. As part of the deal, Uber may invest between $150 to $200 million in Zomato, the report claimed, citing sources familiar with the negotiations.
When contacted, Zomato refused to either confirm or deny the report, saying it “does not comment on rumors or speculations”. However, according to TechCrunch, the negotiations are at an advanced stage, and the terms pf the deal may be finalized by the end of this year. The talks were first reported by the Times of India last month.
As an event in Delhi earlier this month, Zomato Founder and CEO, Deepinder Goyal, said the company is aiming to raise up to $600 million in a new funding round. The company is currently delivering 1.3 million orders a day from 150,000 restaurants across India at more than 10 orders per restaurant per day. On the other hand, UberEats has found it difficult to gain traction in the face of stiff competition from home-grown competitors like Zomato and Swiggy, who, between them, own the lion’s share of the online food-delivery market in the country.
The deal is reportedly in the works even as rumors about a possible merger between Swiggy and Zomato – the two biggest players in the burgeoning online food delivery market – have resurfaced. According to reports, talks between the two companies have resumed as the competition is set to grow with Amazon’s reported expansion into online food delivery business in the country in the coming months.
With Inputs From IANS