There was a time when startup investor wisdom decreed it difficult, if not impossible, for Indian startups to compete with and win against global majors looking to expand into their domain in India. The Uber of India would be Uber, and the Amazon of India would be Amazon. On 21 January, when food tech major Zomato announced its acquisition of Uber Eats’ Indian business, that thinking went out the window.
According to a stock exchange filing made by Zomato shareholder Info Edge, the deal was an all-stock transaction, giving Uber a 9.99% stake in Zomato.
An acquired taste
Zomato swallows Uber Eats India — just desserts or a bitter pill?
Uber Eats India's fickle, deal-seeking customer base and heavily loss-making operations weren't enough to deter Zomato from an acquisition. Here's why
When Uber Eats was launched in India in 2017, it was part of a global strategy for its parent company, Uber
While most expected it to succeed, Uber Eats India has barely dented the market share of incumbents Zomato and Swiggy
Instead, after close to three years of futile efforts to catch India's foodtech heavyweights, Uber has sold the struggling food delivery business to Zomato
But given Uber Eats India's woes, questions linger about why Zomato even bothered to acquire it. Especially after rival Swiggy passed on an acquisition