The competition between the Zomato and Swiggy is going to be tougher. Uber sold its Eats business to Zomato.

In India the Uber has sold its food delivery service “Uber Eats” to Zomato. Uber will get a 9.99% stake in the Indian start-up, helping it maintain its presence in the sector.

All Uber Eats customers in India will now be redirected to Zomato but it’s unclear if the acquisition will cause lay-offs.

The deal is likely to give Zomato an edge over its rival Swiggy in a fast-growing but fiercely-contested sector.

Zomato operates in more than 500 cities in India and the firm believes that the acquisition will further strengthen its presence.

Deepinder Goyal, Founder and CEO of Zomato, said “We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across India. This acquisition significantly strengthens our position in the category,” as per news reports .

Uber Eats launched in India in 2017 with a promise to revolutionize the sector. The San Francisco-based company has since been trying to increase its customer base, but faced a tough competition from Zomato and Swiggy.

Uber said India would continue to be its priority.

Dara Khosrowshahi, Uber CEO, said “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”.

Correspondents say the deal will further intensify the competition between Zomato and Swiggy.

  food