Zomato obtains Uber Eats India for Rs 2,485 crore. Would this lead to Layoff of the Uber Eat Team?
Amongst Uber’s core ride-hailing Business, its food ordering business earned lower margins. Also, Uber has forecasted a negative revenue of 762.5 crores in their India food delivery Business by the end of Dec 2019 according to Uber’sRegulatory disclosure.
While UberEats was competing with the larger food orderings rivals like Swiggy and Zomato. Today by 3:00 AM, The online food delivery platform of Uber has been acquired by Zomato according to the news reports. By selling its food ordering platform, Uber is expected to cut down its losses.
Will the Acquisition affect operations in all the cities of India? Yes. In all 550 cities.
What will happen to the Customers/Users of Uber Eats?
- Uber Eats will discontinue its delivery partners, Operations and Direct restaurants
- All the Uber Eat customers will be redirected to Zomato app
Will Zomato Absorb the Uber Eats Team?
Based on the new reports, Zomato won’t absorb the Uber Eats Team in India. This means, 100+ executives will either be reallocated or laid off
What is in it, for Zomato?
Zomato’s Food Delivery Platform and its restaurant discovery have gathered information of more than 1.5 Million restaurants over 24 countries. Zomato supplies approximately 70 Million Users/Customers every month.
With this acquisition,
- Zomato is aiming to raise up its fund to $600 million.
- This consolidation significantly strengthens the Zomato’s market presence, especially in the southern parts of India.
- Swiggy strongholds the Southern part of India. While Zomato was doing great in North Indian with almost 70% of 70 million orders the company gets in a month, this acquisition will pay the way for Zomato to explore the south and outnumber Swiggy.