MUMBAI: Online food delivery app Zomato has acquired Uber’s food delivery business, Uber Eats, in India in an all-stock deal. According to media reports, the acquisition was carried out at a value of $350 million ( Rs 2,485 crore). Moreover, Uber has got almost 10 per cent stake in Zomato.

Post acquisition, Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps will migrate to the Zomato platform, effective 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,” Zomato CEO Deepinder Goyal said.

“Our Uber Eats team in India has achieved an incredible amount over the last two years, and I couldn’t be prouder of their ingenuity and dedication, ” Uber CEO Dara Khosrowshahi said. He added Uber will continue to invest in growing its local rides business.

Through this deal, Uber Eats India users now become Zomato users. Similarly, the delivery partners who were earlier associated with Uber Eats India will be on-boarded on Zomato’s fleet. The first big consolidation in online food delivery segment will pull Zomato ahead of Swiggy.

The acquisition comes after Zomato’s latest fundraising led by existing investor Ant Financial, an Alibaba affiliate, which pumped in $150 million at a $3 billion valuation.