Zomato Rumored To Buy Uber Eats' Indian Business
The deal has not been confirmed by either company. The progression of this deal was recently reported by TechCrunch.
Additionally, the deal is said to include major investments into Zomato from Uber. More specifically, Uber is expected to invest between $150 million and $200 million into Zomato.
The rumored deal aligns with Uber’s past comments on business decisions. Dara Khosrowshahi, the CEO of Uber, has made clear that whenever Uber Eats is unable to maintain a first or second position within a country’s food delivery market, it will no longer consider that country viable for business.
The inability of Uber Eats to compete with Zomato is due to late entry into India’s food delivery market. Uber Eats entered the market during the middle of 2017. The company has consistently worked at trying to overtake Zomato in market share but has been unsuccessful. Zomato consistently pulls in over 1 million orders a day. Meanwhile, Uber Eats at its most successful, was only pulling in 600,000 orders per day.
Zomato has consistently been fundraising in private rounds, though there is no word over speculation of an IPO.