Zomato Media Pvt. Ltd has acquired the Indian business of Uber Eats, the food delivery business of the ride-sharing giant, in an all-stock deal, adding a powerful new investor to its shareholder roster in its battle against arch-rival Swiggy for supremacy in India.
“This deal is a reminder for global companies and startups that in many industries, they are going to need a local player partnership to (play) the market better,” said Sanchit Vir Gogia, CEO of advisory firm Greyhound Research. “There is also a small slice of customers, who may have moved to Uber Eats due to bad experience with either Swiggy or Zomato. Now these users will be back with Zomato.”
The Uber-Zomato deal also signals maturity in the food delivery market with space for new firms dwindling, said analysts and investors.
“When any tech industry reaches maturity, there have been examples that it turns into a duopoly,” said Gogia.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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