tech2 News StaffFeb 22, 2019 14:56:06 IST
The online food delivery service in India is booming and competitors such as Swiggy, Zomato and Uber Eats have been trying all the tricks in the book to woo the customers. Now a new deal is in place which could significantly change the landscape of the industry.
As per a report by The Economic Times, Uber Eats has is in final stages of negotiations to sell its business to industry leader Swiggy. This will be the biggest acquisition that Swiggy has ever made and the reports indicate that the deal will be a share swap giving Uber Eats 10 percent share in Swiggy. The deal is said to be finalised by next month end.
Uber Eats, a global food delivery brand under ride-hailing service Uber, is currently valued at $20 billion. "It is prudent to be invested in Swiggy than burn capital competing for the same set of restaurants and consumers," said an ET source who is aware of the deal. Uber Eats had a cash burn of $25 million on an average 9 million orders.
The report also states that Uber Eats had held talks with Zomato as well but the two companies could not come to an agreement. Uber Eats is currently active in 37 cities across India.
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