
The online food delivery industry in India recently witnessed the on-demand app ‘Zomato’ purchase its competitor ‘UberEats’ for a whopping amount of Rs 2500 crores (~$355 million). This news has shocked the digital food delivery industry as the business has become a duopoly now, which means the competition is only between Swiggy and Zomato. Previously, UberEats was running for the 3rd spot behind the other two giants, but since the starting of 2019, it has been in search of a buyer.
Now that Zomato has acquired it, let us discuss the reasons for the downfall of UberEats.
Reasons for Zomato acquiring UberEats:
- UberEats lost its business by close to 20% in the last one and half years. It incorporated a tactic by providing a 50% offer to almost all users, which was an utter failure.
- The sales strategy was poor when compared to its competitors, where the average cost per order was ₹170 when compared to the average cost per order of Swiggy (₹272) and Zomato (₹285).
- The daily order numbers in December for Swiggy and Zomato were 71% and 67% more than UberEats, respectively.
- Zomato had raised $150 million in fresh capital at a valuation of $3 billion from existing investor Ant Financial, and it was easy for it to buy UberEats, which was already searching for a buyer.
- The acquisition of UberEats will reduce the competition for Zomato since there is only one equivalent competitor – Swiggy.
Effects of Zomato buying UberEats:
- UberEats ceases to exist as a separate app, and if opened, will be redirected to Zomato.
- The condition of 245 executive-level UberEats staff is ambiguous, and they could either be reallocated or laid-off.
- Zomato has completely acquired UberEats, but the latter still holds a 9.99% stake in Zomato.
- Zomato has become a superpower in food delivery in India, capturing around 50-55% of the market.
- UberEats is connected with over 26000 restaurants in 41 cities. They will now be available for Zomato.
Bottom line:
It is evident from the facts mentioned above that the food delivery industry is crossing boundaries and the scope for a business model similar to the above apps would be profitable provided the design of the application is coherent with the market demands.
The easy solution for developing a food delivery app is making use of the UberEats clone app.
UberEats clone app is a product of Appdupe which aims at developing a replica of the desired application with simple customization.
The services offered in the UberEats clone app:
- 100% customizable white label branding
- Organize and control the basic profile
- Lifetime license available after app purchase
- Legal protection and security

Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.
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