Uber Eats Shuts Down After Zomato Takes Over; 100 Employees Will Be Fired: 5 Things You Should Know
India’s 3rd biggest food delivery app: Uber Eats has shut down operations, as Zomato has acquired the company.
This has triggered a chain reaction, which also includes a possible firing of 100 employees.
Here are 5 things you should know:
Zomato Is The New Owner Of Uber Eats
India’s oldest food discovery app, and 2nd biggest food delivery app after Swiggy: Zomato, has acquired Uber Eats in an all stock deal.
Zomato has paid $350 million or roughly Rs 2800 crore to acquire Uber Eats, and in return, Uber will now control 10% stake in Zomato.
It seems it has been a stock exchange deal as well.
Zomato had recently received $150 million as funding, against a valuation of $3 billion by Ant Financials, which is the investing arm of Alibaba.
Uber Eats Will Cease To Exist, 100 Employees Can Get Fired
Uber Eats as a brand, and entity will cease to exist.
All existing customers of Uber Eats are now being directed to Zomato for ordering food.
There are 100-odd employees of Uber Eats, and as per reports, they will not be absorbed. Hence, we are speculating that they can be fired.
This can be the biggest shake-up of India’s food delivery business, since an existing brand, has been completely shut down.
Zomato Offering Minor Discounts
As a welcome offer to existing Uber Eats customers, Zomato is offering some minor discounts like 50% off on first three orders and a free trial of Zomato Gold for three months and more.
Zomato Becomes Biggest Food Delivery App
Zomato expects that 90% of the existing Uber Eats customers will now become part of Zomato family, and if that happens, then, Zomato will control 50-55% of the market.
This way, Zomato will become India’s biggest food delivery app, easily beating Swiggy.
Discounts May Dry Up For Foodies
With this consolidation, there will be only two major food delivery apps remaining: Zomato and Swiggy, both sharing almost 50-50 percentage of the market.
This can lead to some strict pricing, as there will be no competition left to fight.
Foodies who love to order via food delivery app, should be prepared to handle this new reality.
We will keep you updated, as more details come in.