Uber Eats May Say Yes To Zomato; $500 Million Is The Asking Price, Even As Swiggy Looks On..
How Did This Happen?
The San Francisco-based company has quoted a price of $500 million for UberEats, as per the report.
Also, the negotiations included a stock deal and Uber might be investing in Zomato’s next financing round.
As per the news, Zomato is the frontrunner in the procurement of the food delivery business.
According to the current round of negotiations, it involves a stock deal with Uber, additionally, investing in the homegrown company’s ongoing $500-600 million round.
What About Swiggy?
Although the talks with Zomato have been going on for several weeks, as per the information mentioned in a report in Times of India.
There have been reports of Uber sending feelers to Zomato’s rival Swiggy as well but those talks are yet to take shape.
According to the sources “Talks with Zomato are now progressing towards a term-sheet and discussions are more realistic this time around,”.
Why Is Uber Planning To Sell-Off UberEats?
In terms of the Indian food delivery market, UberEats is a distant third in comparison to its rivals Zomato and Swiggy that clock around 2-2.5 million orders every day.
While when we talk about UberEats, It only clocks 2,50,000-3,00,000 orders per day.
If comparing the value of the order between these providers then on an average UberEats witness $2 per order as compared to $3-4 per order for Swiggy and Zomato.
What Is In It For Zomato?
Zomato has been expecting to crack Swiggy’s stronghold in the southern states for some time so this deal appears to be an attractive option.
It is also expected that this deal will also help to push Zomato’s market share over Swiggy and entice new strategic partners to come onboard.
As per the news, the proposal of UberEats acquisition comes amid Zomato’s efforts to raise capital.
The sources also confirm positive signals from its existing investor Ant Financial.
Which has already given a nod for a $200 million infusion, as mentioned in the report.
During May this year, Uber got a dull response for its IPO and also has been struggling to sustain its food delivery business in India.
It seems that Uber is planning to focus on markets where it can be the first or the second player.