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Zomato Enters 17 New Cities, Eyes 500 Towns by September: Report

Globally, Zomato works with 1.4 million restaurants across 24 countries and serves more than 65 million users every month

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Zomato. Twitter

Food ordering app Zomato on Monday announced its expansion in 17 new cities in India, taking the total to 213 cities.

The new cities are Bulandshahr, Shahjahanpur, Solan, Palwal, Rewari, Machilipatnam, Nandyal, Bhimavaram, Ongole, Srikakulam, Kadapa, Kottayam, Kollam, Khanna, Gurdaspur, Ambur and Deoghar.

“We have been adding almost one city to our portfolio every day since December 2018. Our next target is to deliver food across 500 cities in India by the end of September 2019,” Mohit Gupta, CEO, Food Delivery, Zomato, said in a statement.

Food Delivery
Share photos of hot, steamy foods on your social media pages and tell customers you’re accepting food delivery right now.

Zomato has around 1.8 lakh delivery partners in the country.

“Emerging cities are a major growth avenue for us and we expect them to constitute more than 50 per cent of total order volume by the end of the year,” said Deepinder Goyal, Founder and CEO, Zomato.

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Zomato launched its online ordering and food delivery services in May 2015.

Globally, Zomato works with 1.4 million restaurants across 24 countries and serves more than 65 million users every month. (IANS)

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Zomato Acquires UberEats in India in an all-stock Deal

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date

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Zomato NRAI
Zomato in a smartphone device. Pixabay

Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.

According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.

Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.

It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.

Zomato, Dining, Gold
Home-grown restaurant search and delivery platform Zomato on Friday introduced the “Infinity Dining” plan for its “Gold” subscribers that allows them to have unlimited buffet at partner restaurants. Pixabay

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.

“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,” said Khosrowshahi.

“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.

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On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.

The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date. (IANS)

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