Heena Sharma Blog

Uber on Tuesday announced the sale of its food delivery business in India to Zomato in an all-stock deal. Uber will get a 9.9 per cent stake in Zomato as part of the deal whose size has not been disclosed. The deal for Uber Eats, which operates in 41 cities, was signed at 3 am, and its customers will be shifted to the Zomato app from 7 am. The deal is applicable only in India and Uber Eats will continue to operate in Bangladesh and Sri Lanka. According to sources the deal value is around $300- 350 million. “ 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 Deepinder Goyal, CEO of Zomato. Sources said the move is part of Uber’s strategy to be either number one or two in each of their businesses in every country they operate. In India, Uber Eats grew very quickly to take a 12 per cent share of the food...

A day after Zomato snubbed a customer who refused an order from a non-Hindu rider, #ZomatoUninstalled trended on Twitter on Thursday, with many accusing the online food delivery platform of bias. # BoycottUberEats also caught on after UberEats backed its rival’s “Food has no religion” comment. Even as the incident had social media divided, the Jabalpur police in Madhya Pradesh sought an undertaking from the Zomato customer that he would not spread religious hatred. The controversy began on Tuesday when a Zomato customer tweeted: “Just cancelled an order on @ZomatoIN they allocated a non-Hindu rider for my food they said they can't change rider and can't refund on cancellation. I said you can't force me to take a delivery. I don't want don't refund just cancel.” In response, the official Twitter handle of Zomato tweeted, “Food doesn’t have a religion. It is a religion.” Zomato founder Deepinder Goyal tweeted: “We are proud of the idea of India — and the...

Food delivery services are taxed at 18% which the restaurants have to pay Companies News : Online food delivery service companies like Swiggy are facing the heat from restaurants after the goods and services tax (GST) on eating outlets was cut to five per cent, from 18 per cent in November, and input tax credit provision was withdrawn. Some restaurants have started charging higher prices on online food delivery platforms. Others are negotiating a commission cut with online food delivery partners to make up for the 3.5 per cent additional cost due to unavailability of the input tax credit (ITC) facility. Swiggy, Zomato and Foodpanda provide online delivery services to restaurants at a commission of around 20 per cent, which is levied an 18 per cent GST. Unlike earlier, restaurants can no longer claim ITC on the 18 per cent GST for the input services from these delivery platforms. “These online food delivery companies have represented for a rate reduction or to allow IT...