February 26, 2020

Uber Sells Food Delivery Business in India

In a statement on Monday, he said, “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.”

Uber has recently ceded ground in several of the international markets where it operates. It pulled Uber Eats from South Korea in September and sold off its ride-hailing business in Southeast Asia to a local competitor in 2018.

Last March, Uber purchased its largest competitor in the Middle East, Careem, as a hedge against competition there. That deal has been approved by regulators in most of Careem’s markets.

For Zomato, buying the Uber Eats business in India will help it compete against Swiggy. Both companies have been raising money from investors — and burning through much of it — as they fight over the small orders that dominate India’s food delivery market.

“This acquisition significantly strengthens our position in the category,” said Deepinder Goyal, Zomato’s chief executive.

Zomato began in 2008 as an online guide that scanned menus from restaurants. It later added reviews and reservation features, and more recently, food delivery, which is now the core of its business. Its investors include Ant Financial, which added $150 million to Zomato’s coffers in a fund-raising round this month.

To increase revenue, Zomato began a loyalty program in 2017 called Zomato Gold that gave diners buy-one-get-one-free deals at thousands of restaurants. The program, which was very popular, was initially limited to in-person dining but later extended to delivery.

Article source: https://www.nytimes.com/2020/01/20/technology/uber-eats-zomato.html?emc=rss&partner=rss

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