Zomato-Uber Eats closer to becoming India’s biggest delivery service
According to a report by ET, ride hailing company, Uber plans to sell off its food delivery business in India to rival Zomato. In India, the leading contenders in the food delivery business are Zomato and Swiggy. Despite launching two campaigns in India to win market share, UberEats has not made significant inroads into the Indian market in the course of a year and is burning cash fast.
Uber had stated that its global food delivery business fell from 12 to 8 per cent in their earnings call in Q1 FY2020, primarily due to the aggressive price war with its rivals in India. Now, the company is planning to infused $100-200 million into the combined entity of Zomato and Uber Eats making it an integral part of the share swap between the two players. The aggregators are in a period of exclusivity where neither party can approach other interest parties in the industry. If the deal goes through, the merged entity will become the biggest food delivery aggregator in India in terms of volume of transactions.