Online food delivery startup Zomato has agreed to acquire Uber's food delivery business in India—Uber Eats—in an all-stock deal, which gives Uber Technologies a 10 percent stake in Zomato.

The deal, valued at $300 million, will give Zomato over 50 percent marketshare in food delivery segment.

“Zomato Media Private Ltd. has signed a definitive agreement to acquire Uber's food delivery business in India in an all-stock transaction, which gives Uber 9.99% ownership in Zomato,” said Info Edge, which has about 23 percent stake in Zomato, in a regulatory filing.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, users of the Uber Eats apps to the Zomato platform, effective today, according to the filing, dated January 21.

"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business," said Dara Khosrowshahi, Uber's chief executive officer.

Uber Eats in India accounted for 3 percent of the business' gross bookings globally, but more than a quarter of its adjusted EBITDA loss in the first three quarters of 2019, Uber said.

"You can still get rides via the Uber app, which remains active and available. And you can still use Uber Eats if you're travelling outside India," said Uber in a statement.

Uber Eats India, which was serving 41 cities and has partnership with 26,000 restaurants, has 12 percent marketshare in the food delivery category.

Zomato is valued at around $3 billion after the startup raised $150 million from Alibaba affiliate Ant earlier this month.

Zomato confirmed that the $150 million fundraise was part of a larger round, but did not give further details.

The Gurugram-based restaurant aggregator recorded a loss of about Rs 1,000 crore in the financial year ended in March 2019 on revenues of Rs 1,400 crore.

First Published:Jan 21, 2020 7:40 AM IST