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Uber CEO Reveals The Reasons Of Collaboration With Zomato

| Published on January 28, 2020

We all know Zomato & Uber Eats have merged as a single unit but the causes and facts behind it are still unexplored. Zomato’s CEO Deepinder Goyal shared important aspects of this collaboration last week and Uber’s CEO Dara Khosrowshahi’s turn was still pending.

Khosrowshahi explained his reasons highlighting the obviousness of consolidation in not only businesses but other sectors, as well, especially in the presence of extraordinary capital & companies.
uber eats

The Statistics Behind The Collaboration!

Uber Eats was not doing well when it came to food delivery service as the entire game is constantly being led by Zomato & Swiggy. One of the main reasons for collaboration is to elevate the Uber Eats’ business up in India of which the possibilities are bit shiny now.

In the interview with CNBC, Uber’s CEO quoted, “There has been too much capital chasing too many companies which makes sense when you are in an only-growth mode. That growth has to consolidate so that you have two or three players in the market instead of four-five players.”

When Zomato’s CEO explained the deal, he quoted that Zomato anticipates acquiring 80% business of Uber Eats that would cause a 20% upward shift in its users and 25% in the orders. Along with that, Zomato is also going to onboard 500 restaurants of Uber Eats.

“The idea is to only improve the quality of our business and Uber Eats was a step in that direction. It was not about buying a number three player, but buying a number one or number two is some cities where we were lagging behind”, mentioned by Deepinder Goyal.
uber eats
At the time of choosing a partner to collaborate, Zomato was not the only one in line but Swiggy was, too. Due to some dissimilarities in valuation and other complicated matters with Swiggy, Zomato got it. As Amazon is also on the way to initiating its food delivery service, Uber Eats had reached them as well.

Well, we are all looking forward to what the professionals make out of this alliance. It is surely going to be an interesting journey! Isn’t it?

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