ZOMATO’S UBER EATS, MERGER OF THE LOCAL RIVALS
After Uber Eats decided to exit from the Indian market, it has managed to save itself from an annual loss of $750 million. The announcement of acquisition from Zomato did not come as a surprise to the industry experts as the talks were being done for over a month.
Zomato announced the acquisition of the Indian arm of Uber Eats officially on Tuesday with a 9.99 percent stake in the company. With a company suffering such huge losses it was expected to be taking a decision of this nature before it had to lay off more employees. Uber Eats has been fighting a battle with the industry giants like Zomato and Swiggy who happens to be the largest food-delivery applications in the Indian market at present
Both Zomato and Uber Eats have been in a discussion for advanced talks on the merger after the failure of the US Company to expand their traction in the market of the Indian food delivery system. There have been talks about Zomato paying a far higher price for the stake in the company than it actually deserved because the guarantee of all the clients being shifted to them has not been confirmed, there have been rumors of Swiggy taking over many of their existing clients. But for the sake of consolidation of the industry right now, there had to be someone who would take the step and so did Zomato.
“Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication,” said Uber CEO Dara Khosrowshahi in a statement. “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.”
There have been questions floating in the air from the customer’s end that have loyally been using the Uber Eats promo code to get their food delivered about the impacts they would have to face. The industry giants like Swiggy and Zomato have for long disrupted the industry at fancy gaining advantage from the amplifying digital inclination, timing the deliveries, pricing, etc that have affected the consumers. The growing number of these applications in the industry has pushed the restaurants to on a large scale revamp their business models to make sure that there is a balance maintained between the growing traffic and th4e traditional dining experience on the applications.
At present, Uber Eats has effectively wrapped its processes under their banner and all the clients, delivery agents, and customers henceforth will be shifted under the umbrella of Zomato.