Zomato buys Uber's Indian food delivery business

Indian online food delivery startup Zomato said it bought Uber`s food delivery business in the country in an all-stock deal that gives the ride-hailing app a 10% stake in Zomato, which is backed by Alibaba`s Ant Financial. Uber Technologies Inc`s food delivery business struggled to take off in India after launching in 2017, as Zomato and other local rival Swiggy dominated the market. Uber Eats also pulled out of South Korea earlier this year.

The deal is worth around $350 million, the Economic Times newspaper reported, citing sources. Zomato said Uber Eats in India would discontinue operations and direct restaurants, delivery partners, and users to the Zomato platform, effective Tuesday.

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The acquisition is the latest example of consolidation in the global food delivery market. Earlier this month Dutch firm Takeaway.com pipped investment company Prosus to buy Britain`s Just Eat for 6.2 billion pounds ($8.1 billion). In December, Germany`s Delivery Hero agreed to buy South Korea`s top food delivery app owner Woowa Brothers for $4 billion.