Food app Zomato has announced that it has acquired Uber’s food delivery business in India. The deal is an all-stock transaction, which gives Uber 9.99% ownership in Zomato.
Uber chief executive Dara Khosrowshahi asserted that despite the news, 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."
"We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success," he added.
Zomato founder and CEO Deepinder Goyal said the acquistion "significantly strengthens our position in the category."
"We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India," Goyal said.
Uber Eats in India has discontinued operations. It will direct restaurants, delivery partners, and users of the Uber Eats apps to Zomato.