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Uber sells food delivery business in India to Zomato
- ganeshkrishnan 7y agoZomato is raising close to half a billion dollars. I am extremely curious to see how their financial expenditures are. It's just an app. Does the money go to acquiring new customers via ads? Subsidizing food? Customer service? Running servers?
- kylehotchkiss 7y ago40% off discount codes on every order like swiggy?
- thrwaway69 7y agoI doubt they spend a lot on customer service. The automatic conversation you are bombarded with has taken care of every issue I have ever had...all just results in refund or feedback to some unknown place. Swiggy has more human interaction but yeah, I think it's better to refund, save money on customer service and ban account after a certain threshold of profit you can get out of a person for a high growth unicorn.
- wsxcde 7y agoSwiggy is a scam! They stole 200 bucks from me (as food wastage charges) because I didn't look at my phone for 15 minutes after I placed an order with a full address that I had already fully paid for.
- mindentropy 7y agoYou are thinking like it is a technology company. I think app is just a small part of what they do.
- kkcorps 7y agoIt's All of the above plus Zomato Gold
- namanaggarwal 7y agoI think Uber is getting a good deal out of all these exits 10% in Zomato 27% in Grab 15% in Didi x% in Yandex
- kkcorps 7y agoAcquiring a stake in all the over-valued startups seems like a double-edged sword. The valuation markdown at the time of IPOs of these startups will affect Uber too.
- acd10j 7y agoBut ubereats and other Uber subsidiaries that they sold were themselves over valued, You can see these acquiring a stake as diversification in highly competitive marketplace.
- ulfw 7y agoWithout a doubt. And most of them won’t have the market to get the lofty valuations paid out (which didn’t even work in the best funded market - the US)
- kick 7y agoYandex definitely isn't over-valued. It's undervalued, if anything.
- ulfw 7y agoYea that’s certainly one way of looking at it. The other is “we burned billions trying to win those markets and lost every one of them to a local competitor”
- hayksaakian 7y agowhat if Uber becomes an international holding company for ride sharing businesses? Is that a better or worse future?
- exhaze 7y agoUber lost some markets and won in others (e.g. LatAM, Australia). Also, it's not like Uber spent the money and got nothing for it - it's stake in DiDi is worth more than the amount of money Uber spent in China.
- ulfw 7y agoUber will end up being an American(-only) business like Lyft. It’s inevitable.
- axaxs 7y agoAgreed. As someone who has seen too much of the world, Uber doesn't stand a chance in hell. Grab dominated Asia. Turns out struggling folks aren't willing to pay the Uber premium like Americans do.
- actuator 7y agoGrab dominated SE Asia and that exit for Uber made sense as they got a very good equity stake in a dominant player. They still haven't exited all parts of Asia. I really doubt that Uber is going to be a US only business. They still are growing in markets outside US as well. They had 30% YOY revenue growth last quarter in APAC compared to 38% in NA. I couldn't find the EBITDA numbers broken by geography though.
- deleted 7y ago[deleted]
- Barrin92 7y agoI think this was already interesting to see with the host of different payment services which seem to be very resilient locally. Nubank in Brazil, Monso in the UK, Africa has a host of local companies, Revolut in Europe and so on. There is lot more nuance and regional difference than people thought and I think a lot of companies with questionable business models that bet on world domination will have some problems in the future.
- tybit 7y agoAustralia is dominated by Uber unfortunately, I’d hazard a guess they’ve done similarly well for other countries where the competition is weak. The only competition they faced on entry was Taxis, which is to say, no competition.
- samrohn 7y agoUbereats user from India here. Just opened the Ubereats app and it says "your account is now set up on Zomato" and directing to Zomato app. Looks like they completely shut down the app and moved their operations to the Zomato app.
- tempsy 7y agoWhy is that surprising?
- frozenport 7y agoDid the users accept having their data moved?
- monadic2 7y agoI assumed this was simply relating what is happening from a users perspective.
- draw_down 7y agoCome on
- abhiminator 7y agoAlso, here's how Uber Eats' India page on the web looks like: https://i.imgur.com/rkDQ7qN.jpg https://i.imgur.com/rkDQ7qN.jpg
- IGotThroughIt 7y agoSeems like Travis knew just when to get out. Sinking ship?
- tempsy 7y agoUh he sold all his shares below $30. It’s at $35 now.
- davidmott 7y agoYes, Travis sold a little too early!
- tempsy 7y ago$37!
- IGotThroughIt 7y agoWe'll see.
- tempsy 7y agoI've been holding since $25
- biased_coin 7y agoWhile speculations and early reports of possible sale of Uber Eats were coming, as a user one could see hefty discounts of upto 50% capped at over Rs.200 in the last 3-4 months.