Uber Eats, the food delivery Arm of the global ride-hailing service Uber is in talks with Swiggy for Acquisitions of its food delivering business, as said by some officials who didn’t want to say their name. This deal will be Swiggy’s biggest acquisition ever. Officials aware of the talks said that it will be a share deal, where Uber will be getting a 10% equity stake in Swiggy. Swiggy is now valued at $ 3.3 Billion after its latest round of funding.
This decision came as uber is trying to cut down its losses with respect to the upcoming IPO. Uber is expected with a valuation of $120-150 Billion after its successful IPO.
Uber Eats alone has a valuation of around $20 Billion as reported by a US Analysis Firm. In the First Quarter of 2018, Uber eats revenue was about $1.5 Billion.
But in the end, consumers will not be happy about the deal because of the reduction in the discounts that will happen later. After the acquisition, there will be only 2 market leaders in the food delivering startups sector i.e Swiggy and Zomato. Ola Cabs, which Owns Food Panda has reduced it’s marketing budget by two third which gives more opportunities for swiggy and Zomato.
