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Does The Sale Represent a Good Strategic Move in India for Uber?
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Does The Sale Represent a Good Strategic Move in India for Uber?UberEats tried to have a deal with market leader swiggy but couldn’t go through because of the low valuation of swiggy in India. (TOI, 2018). After UberEats went to Amazon amazon denied the deal because Amazon was about to launch its delivery service. So because of zomato uber deal zomato became a market leader in the online food delivery market replacing Swiggy, Swiggy has earlier 43% market share in the food delivery business and zomato has 40% and uber 12% but after zomato uber eats merger zomato became the clear cut market leader in online food delivery segment. Why zomato acquired uber eats: zomato has a very weak presence in the south Indian market and because of zomato uber eats deal zomato increase its presence in the south Indian market because uber eats has a strong presence in south India and Madhya Pradesh where zomato lagging. So, because of this deal zomato has a competitive advantage over Swiggy. Thus Uber got the 10% shares in zomato which leads to the current market valuation of $5B.To conclude, Still, Zomato is a loss-making company and the leads went well for Uber and the Indian food-tech market. Works Cited BBC. “Uber Sells southeast Asia Business to Grab.” BBC News, 26 Mar. 2018, www.bbc.co.uk/news/business-43536322. Bhattacharya, Ananya. “Nearly Half of All Food-Delivery Transactions in India in 2018 Happened on Swiggy.” Quartz India, 6 June 2019, qz.com/india/1635965/in-2018-swiggy-beat-zomato-olas-foodpanda-uber-eats-by-a-mile/. Ch, Rajesh, et al. “Uber Eats Failed Because It Couldn’t Customise: Swiggy COO - Times of India.” The Times of India, 2019, timesofindia.indiatimes.com/business/india-business/uber-eats-failed-because-it-couldnt-customise-swiggy-coo/articleshow/74205360.cms. Accessed 28 May 2022. CNBC. “By 2022-End, India’s Food-Tech Industry to Reach $8 Billion.” Cnbctv18.com, 28 Jan. 2020, www.cnbctv18.com/retail/by-2022-end-indias-food-tech-industry-to-reach-8-billion-5146811.htm/amp. Accessed 28 May 2022. Joseph, Henry. “Uber Sells All SE Asian Operations (Including UberEats) to Competitor Grab - Irish Tech News.” Irish Tech News, 26 Mar. 2018, irishtechnews.ie/uber-sells-all-se-asian-operations-including-ubereats-to-competitor-grab/#:~:text=Uber%20sells%20all%20SE%20Asian%20operations%20(including%20UberEats)%20to%20competitor%20Grab. Ko Tin-yau. “Food Delivery: Still a Cash Burning Business EJINSIGHT - Ejinsight.com.” EJINSIGHT, Mar. 2019, www.ejinsight.com/eji/article/id/2081206/20190314-food-delivery-still-a-cash-burning-business. Accessed 28 May 2022. peter. “Uber Loses $5.9bn as Asia Investment Values Fall.” BBC News, 5 May 2022, www.bbc.co.uk/news/business-61329641. Accessed 28 May 2022. Tiwari, Suranjana. “Uber Sells Its India Food Delivery Business to Zomato.” BBC News, 21 Jan. 2020, www.bbc.co.uk/news/world-Asia-India-51186316. Accessed 28 May 2022. Wikipedia Contributors. “Uber.” Wikipedia, Wikimedia Foundation, 31 May 2019, en.wikipedia.org/wiki/Uber. Download 433.31 Kb. Share with your friends:
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