As per a recent development, Amazon India is reportedly in talks of acquiring Uber Eats India. The talks for a buyout are in initial stages and a possible strategic alliance could also be explored.
A source has stated, “People order almost daily from a Zomato or a Swiggy. These apps enjoy immense client stackability. Amazon believes this could be a great add-on to its membership plan,”
Amazon has reported a 17% growth in net sales reaching $59.7 Bn in the first quarter of FY19, compared with $51 Bn in first quarter 2018. The company’s operating income increased to $4.4 Bn in theQ1 2019, compared with operating income of $1.9 Bn in Q1 2018.
UberEATS was reported to have contributed $536 Mn in revenue for Uber in the first quarter of 2019. The company believes that the revenue will continue to grow. The food delivery industry is growing at a rate where several ghost restaurants have sprung up.
Earlier this February, Uber Eats was reported to be in talks with Swiggy to divest its business by taking 10% stake of India’s fastest food tech unicorn. Prior to this, Uber Eats was also said to be in talks with Zomato, however, both the discussions have now reportedly failed.
According to sources, Amazon India is interested in entering the food delivery business so that it can add it to the list of services it provides, especially through its Prime membership. Uber has declined to comment on the subject of an acquisition by Amazon of its food delivery segment.
