Platforms see overlap of eatery listings, says Frost & Sullivan

Uber Eats’ estimated 65,000 riders to come under Zomato

The Zomato-Uber Eats deal is reflective of technology trends in India, where Amazon-Flipkart in the e-commerce space and Uber-Ola in the ride-hailing arena have essentially made their respective markets a duopoly, a Frost & Sullivan analysis pointed out.

“With Zomato’s acquisition of Uber Eats, battlelines in the food delivery space have been [re]drawn, as Swiggy and Zomato battle it out for supremacy,” the report said.

With this deal, Zomato would get an expanded delivery network and capacity by on-boarding Uber Eats’ large network of delivery partners, estimated to be 65,000 riders, without burning too much cash, it said.

“An additional benefit is the potential to [add to] the number of restaurants on its platform, especially in south India, where Swiggy holds sway. However, this factor is likely to have only limited impact, considering that in the 40-odd cities where Uber Eats had presence, Zomato already has almost 85-90% of restaurants on its network. In other words, it gets to add only 10% of Uber Eats’ unique set of restaurants,” it said.

Swiggy still leads?

Despite this transaction, Swiggy remained arguably the leading market player in the country, it said. “It will be interesting to see how intense the rivalry between Swiggy and Zomato will get.

With new players such as Reliance and Amazon likely to enter the market, 2020 could be a ground-breaking year for food delivery in India.”

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