Zomato acquired Uber Eats India in an
all-stock deal for USD350 Million
India: Indian food delivery market
is quite diverse and has an ample number of food delivery applications with
Swiggy and Zomato occupying lion’s share in the market. In order to increase its
market share, Zomato has acquired Uber Eats, which is an online food ordering
& delivery platform owned by Uber, in an all-stock deal worth USD350
million. This recent conjunction of Zomato and Uber Eats is expected to enhance
the customer base for Zomato as this new combination will allow the company to acquire
around 50-55% of the overall food delivery market. Additionally, as part of this
acquisition, Uber Eats will discontinue operations in the country and will
direct delivery partners, restaurants and users to the Zomato platform. The
deal gives around 10 percent ownership to Zomato
in the Gurugram headquarters. However, Uber Eats will
continue its operations outside the country as an independent entity. Zomato is
an Indian restaurant aggregator & food delivery platform with a customer
base of over 70 million and provides information on over 1.5 million
restaurants across 24 countries.
CEO of Zomato stated, “We are
proud to have pioneered restaurant discovery and to have created a leading food
delivery business across more than 500 cities in India. This acquisition
significantly strengthens our position in the category.”
CEO of Uber further added, “India
remains an exceptionally important market to Uber and we will continue to
invest in growing our local rides business, which is already the clear category
leader. We have been very impressed by Zomato's ability to grow rapidly in a
capital-efficient manner and we wish them continued success”.
According to TechSci
Research, the amalgamation of Zomato and Uber Eats in India will fetch a large
customer base, as the merger of two companies is also a merger of their
customer bases. Consequently, this will result in a rapid increase in the market
share of Zomato in the India online food ordering & delivery market.
Factors such as rewards & cashback offers, food delivery to doorstep, among
others are contributing to the growing demand for India online food ordering
& delivery market.
According to the recently
published report by TechSci Research, “India
Online Food Ordering and Delivery Market By Operation Type (Food Aggregators &
Restaurant-based), By Source (Online (Mobile App & Web) & Offline), By
Payment (Mobile Wallet, Card Payment, Cash on Delivery & Net Banking),
Competition, Forecast & Opportunities, 2024”,
India online
food ordering and delivery market is anticipated to register a steady growth
during the forecast period. Restaurants and cafes also find it profitable to
sell their food through online mediums since it reduces significant amount of
operational overheads. College students, office employees including working
couples are the key target audiences of food delivery companies. Online food
delivery is a service, where a store or restaurant delivers food to a customer
through the restaurant’s website ore dedicated food ordering portal/app. Deliverables
include drinks, food, and desserts, etc. Payment mode may be online and cash on
delivery. Some features for making successful online food delivery market include
generate-a-code referral system, easy & user-friendly dashboard, social
media integration, customer integration with push notifications and
cross-platform compatibility, etc.
According to the recently
published report by TechSci Research, “India
Online Grocery Market By Category
(Packaged Food & Beverages, Personal Care, Household Products, Fruits &
Vegetables, Others), By Platform (Mobile Application & Desktop Website), By
Region, By Company, Competition, Forecast & Opportunities, 2024”,
growth of
online grocery market in India can be majorly attributed to rising number of
internet and smartphone users. Moreover, the increase in number of working
women, technically advanced millennials and ultra-secured payment
infrastructure are the major drivers for online grocery market in India. India
online grocery market is projected to grow from around $ 569 million in 2018 to
$ 3.6 billion by 2024. The market is categorized into packaged food &
beverages, personal care, household products, fruits & vegetables and others.
Packaged food & beverages segment holds the largest market share, while the
personal care and household products segments are expected to grow at the
fastest pace over the coming years. Moreover, packaged food & beverages category
is expected to hold its dominance on account of increasingly fast-paced ever-changing
consumer lifestyles, rising per capita income levels, among others.
