India’s food tech has several problems cooking
In the near future, both Zomato and Swiggy want to cook a lot of food themselves. It puts them in a strange predicament, and that’s just the start of their many challenges.
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Editor's note: Earlier last week Zomato, one of India’s oldest restaurant app companies, acquired Uber Eats, Uber’s food delivery business in India. The merger of the two businesses created what is in theory India’s largest food delivery company by market share. A spot that till now was held by Zomato’s much younger, Bengaluru-based rival Swiggy. 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. Uber will get a 10% stake in Zomato in a deal that values Uber Eats at $300-350 million, a person familiar with the matter said on condition of anonymity. In January, Zomato raised $150 million in fresh capital at a valuation of $3 billion from existing investor Ant Financial. The Uber Eats app has been shut in India and the app now directs food delivery customers to sign up for Zomato. Delivery workers working with Uber Eats will also move to Zomato, the companies …
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