Deepinder Goyal on Network Effects

In January 2020 Zomato swallowed Uber Eats India in an all-stock deal worth roughly 206 million dollars, handing Uber a 9.99 percent stake. The trade absorbed a sub-5-percent rival and lifted Zomato's share of the Indian food-delivery market to roughly 52 percent — a textbook consolidation move just before COVID-19 lockdowns supercharged online ordering.

In January 2020 Zomato absorbed Uber Eats India through an all-stock transaction worth around 206 million dollars, leaving Uber with a 9.99 percent holding. Uber Eats India had been sub-5-percent on volume; the deal pushed Zomato's share of the domestic food-delivery market to roughly 52 percent, consolidating the duopoly that would define the next phase.