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Uber ties up with Delhi Metro

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New Delhi: Uber, world’s largest taxi aggregator, has partnered with the Delhi Metro Rail Service to introduce a seamless commuter service ‘Uber Transit’ at select metro stations Delhi from Tuesday. The new service will provide last mile connectivity to Delhi Metro customers.

Under the partnership to improve first and last-mile connectivity for users, Delhi Metro Rail Corporation (DMRC) will provide Uber dedicated pick up and drop points.

Talking to reporters, DMRC Managing Director Mangu Singh said that a pilot is being run at about four stations and the facility will eventually be made available in 210 of 274 Metro stations.

“Research has shown that integrating on-demand services with public transport is beneficial for riders,” Mr Singh said at an event which saw Uber launching its “public transport” service in Delhi, making it the ninth city globally and first in Asia to have such a feature.

“This new initiative integrating public transport with mobility operators like Uber will certainly boost first and last mile connectivity solutions for around six million passenger journeys performed in the system daily,” Mr Singh said.

The Public Transport feature on the Uber app works quite similar to the Public Transit option available on Google Maps. However, Google’s offering lets users even book Uber and Ola cabs. The search giant also in the recent past enhanced the Maps app with an Auto Rickshaw Public Transport Mode and voice navigation for public transportation.

“India is a fundamental market for Uber,” said Dara Khosrowshahi, CEO, Uber, while addressing the media at the event. “We think that it’s a big market and would help us bring innovations.”

Uber is also bullish on utilising Indian talent to export its developments to global markets and double down its headcount in the country. Nonetheless, the company often faces concerns over safety issues.

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Zomato acquires UberEats India for nearly Rs 2,500 crore

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New Delhi: Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.

According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.

Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.

It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.

“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.

On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.

The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date.

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